Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

MIS Essentials

Authors: David M. Kroenke

4th edition

978-0133546590, 133546594, 978-0133807479

More Books

Students also viewed these Accounting questions