0 350 350 state taxes net of federal impact 11 28 21

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: .1% 2.8% 2.1% Impact of foreign tax differential (16.9%) (13.8%) (11.7%) Tax credits (0.4%) (2.2%) (1.1%) Other 3.0% 5.6% 3.6% Effective income tax rate 21.8% 27.4% 27.9% Amazon reported tax expense on its 2009 income statement of $253 million. What did Amazon report as income before income taxes on its 2009 income statement? ANSWER $253 million / 21.8% = $1,160.55. Amazon reports $1,161 million on its income statement. LO 5 S E-8 Reporting deferred tax asset and deferred liabilities In 2009, Trek Bicycle Company reported the following information related to its deferred tax assets and deferred tax liabilities: Long-term deferred tax assets: Long-term deferred tax liabilities: Valuation allowance $17 million $16 million $ 2 million Will Trek report a long-term net deferred tax asset or a long-term net deferred tax liability on its 2009 balance sheet? ANSWER Trek will report a long-term net deferred tax liability of $1 million on its balance sheet. The valuation allowance is Trek’s estimate of the am...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online