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Amgen Inc. reported the following in its tax footnote to its 2018 financial statements. Use this information to answer the requirements. The reconciliations between
Amgen Inc. reported the following in its tax footnote to its 2018 financial statements. Use this information to answer the requirements. The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follow 2018 2017 2016 Federal statutory tax rate 21.0% 35.0% 35.0% 2017 Tax Act, net repatriation tax 70.7 Foreign earnings (4.3) (15.8) (15.5) 2017 Tax Act, net deferred tax remeasurement (6.9) - Credits, Puerto Rico Excise Tax (2.5) (2.2) (2.3) 2017 Tax Act, net impact on intercompany sales (1.8) Interest on uncertain tax positions 1.2 0.6 0.5 (0.8) (0.6) (0.7) Credits, primarily federal R&D Share-based payments (0.2) (0.7) (1.3) Other, net (0.5) (0.7) Effective tax rate 12.1% 79.4% 15.796 | a. Determine the tax rate that we should use to compute tax on operating profit for each year 2018, 2017, and 2016. 2018 2017 2016 Tax rate 0 96 b. Compute the amount of tax on net operating profit for 2018. The company reported the following items on its 2018 income statement ($ millions). Interest expense, net $1,392 Interest and other income, net 674 Provision for income taxes 1,151 Round answer to the nearest whole number. $ 0 million
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