Libby_7e_MBA_Companion_Solutions

Com p any w ould be su bject to ad d itional us

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Unformatted text preview: zed d eferred incom e tax liabilities on these earnings is not p racticable becau se su ch liability, if any, is d epend ent on circu m stances As of October 3, 2009, the Com pany had und istribu ted earnings of foreign subsid iaries of app roximately $124 existing if and w hen rem ittance w as to occu r. million, for w hich d eferred taxes have not been provid ed . The Com p any intend s to reinvest these earnings for the foreseeable fu ture. If these am ou nts w ere d istribu ted to 89 United States, in the form of d ivid end s or otherw ise, the the Com p any w ould be subject to ad d itional U.S. incom e taxes. Determ ination of the amount of u nrecognized d eferred incom e tax liabilities on these earnings is not p racticable becau se su ch liability, if any, is d epend ent on circum stances existing if and w hen rem ittance w as to occu r. Page 20 of 21 89 END-OF-CHAPTER MATERIAL A reconciliation of the effective incom e tax rate to the fed eral rate is as follow s: 2009 2007 35.0% 2.6 (1.8) 0.4 35.0% 3.0 (1.3) (0.6) 35.0% 2.8 (0.5) (0.1) 36.2% Fed eral incom e tax rate State taxes, net of...
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