Unformatted text preview: .1%
Impact of foreign tax differential
Effective income tax rate
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?
$253 million / 21.8% = $1,160.55. Amazon reports $1,161 million on its income
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
$ 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?
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
- Spring '12
- Balance Sheet, Deferred tax, Generally Accepted Accounting Principles, Income tax in the United States