Kroger Company

III.Income Taxes

1. If Congress voted to eliminatecorporate taxes, what would be the effect on your companys income statement and balance sheet? Defend your response.
2. Calculate the income tax rate for your chosen company. What effect will anincrease in incomeof $2,000,000 have on your company?
3. What are theeffectson the balance sheet and income statement? Justify your response.
4. How much did your company pay inforeign taxeslast year? What percentage of its income is United States vs. foreign?

V.Pensions Address the following elements in the form of a memo to your CEO:

1. From your companys financial information, what type ofpension plandoes it have? Discuss the reasons why your company has chosen this particular plan.
2. What was theeffectof the pension plan on your companys financial statements? Defend your response.
3. Your CEO has informed youthe controller of your companythat the board of directors has made the decision to look atother optionsof types of retirement plans. Investigate what other alternatives would be available, and determine which would be appropriate for your particular company.