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EXHIBIT 20.10 ToyCo: Tax Reconciliation Table Year 1 Year 2 Year 3 wwwwwwwww Statutory income tax rate 35,0 % 35,0 % 35,0 % State
EXHIBIT 20.10 ToyCo: Tax Reconciliation Table Year 1 Year 2 Year 3 wwwwwwwww Statutory income tax rate 35,0 % 35,0 % 35,0 % State and local incom taxes, net 1,1 % 1,0 % 0,7 % Repatration of foreign earnings 3,5 % Liabilities settleable in common stock 3,4% Tax on international earnings -6,5% -7,9% -7,5% Exam settlements -6,5% -0,8% -0,5% Other, net 1,5% -0,4% 1,5% Effective tax rate 28,0 % 30,4 % 29,2 % Profits $ million Operating profis (EBITA) Earnings before taxes 587,1 572,6 673,6 462,3 441,1 529,7 EXHIBIT 20.6 Walmart: Operating Taxes $ million 2016 2017 2018 Statutory tax rate 35.0% 33.8% 21.0% > 22,764 20,437 21,957 = Statutory taxes on EBITA 7,967 6,908 4,611 U.S. state income taxes 1.7% 1.8% 3.3% Income taxed outside the United States (4.5%) (6.3%) (3.5%) Federal tax credits (0.6%) (0.9%) (1.2%) Other operating taxes (3.4%) (5.4%) (1.4%) * Earnings before taxes (EBT) 20,497 15,123 11,460 Other operating taxes (697) (817) (160) Operating taxes 7,271 6,091 4,451 1 Onoration tavas divided by FRITA Operating tax rate 31.9% 29.8% 20.3% K- 22 av 35 75% 2. Exhibit 20.6 presents an approach for estimating operating taxes. Use this method to determine the operating taxes for ToyCo in year 3. What are ToyCo's statutory rate, effective tax rate, and operating tax rate under this approach?
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