Question 17 5.55 pts Use the information in the schedule of the components of Facebook's deferred...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 17 5.55 pts Use the information in the schedule of the components of Facebook's deferred tax assets and liabilities to estimate the difference in depreciation expense taken for tax purposes and for financial reporting (i.e. GAAP) purposes during the fiscal year that ended on December 31, 2020. Your answer should be in millions of dollars; and, if depreciation for tax purposes is greater than (less than) depreciation per GAAP, you should enter your answer as a positive (negative) amount. Question 18 5.65 pts Use the information in the schedule of the components of Facebook's deferred tax assets and liabilities to estimate Facebook's cumulative net operating losses as of December 31, 2020. Your answer should be in millions of dollars. The components of income before provision for income taxes are as follows (in millions USD): Year Ended December 31, Domestic Foreign Income before provision for income taxes The provision for income taxes consisted of the following (in millions USD): Year Ended December 31, Current: Federal State Foreign Total current tax expense Deferred: Federal State Foreign Total deferred tax (benefits)/expense Provision for income taxes 2020 24,233 2019 2018 5,317 8,800 8,947 19,495 16,561 33,180 24,812 25,361 2020 2019 2018 3,297 4,321 1,747 523 565 176 1,211 1,481 1,031 5,031 6,367 2,954 -859 -39 316 -122 19 34 -16 -20 -55 -997 -40 295 4,034 6,327 3,249 A reconciliation of the U.S. federal statutory income tax rates to our effective tax rate is as follows (in percentages): Year Ended December 31, U.S. federal statutory income tax rate State income taxes, net of federal benefit Research and development tax credits Share-based compensation Excess tax benefits related to share-based compensation Foreign-derived intangible income deduction Effect of non-U.S. operations Non-deductible FTC settlement accrual Research and development capitalization Other Effective tax rate 2020 2019 2018 21.00% 21.00% 21.00% 0.80% 1.80% 0.70% -1.30% -0.80% -1.00% 0.20% 4.50% 0.30% -1.60% -0.70% -2.60% -1.90% 0.00% 0.00% -2.40% -5.80% -5.90% 0.00% 4.50% 0.00% -3.00% 0.00% 0.00% 0.40% 1.00% 0.30% 12.20% 25.50% 12.80% Our deferred tax assets (liabilities) are as follows (in millions USD): December 31, Deferred tax assets: Net operating loss carryforward Tax credit carryforward Share-based compensation Accrued expenses and other liabilities Lease liabilities Capitalized research and development Other Total deferred tax assets Less: valuation allowance Deferred tax assets, net of valuation allowance Deferred tax liabilities: Depreciation and amortization Right-of-use assets Total deferred tax liabilities Net deferred tax assets 2020 2019 2,437 2,051 1,055 1,333 243 135 1,108 798 2,058 1,999 1,922 0 340 149 9,163 6,465 -1,218 -1,012 7,945 5,453 -3,811 -2,387 -1,876 -1,910 -5,687 -4,297 2,258 1,156 When answering questions 13 through 18, please show your supporting calculations in the worksheet named Facebook Inc Tax. Note that the combined federal, state, and international tax rate was 19.4%, 17.0%, and 15.8% in the fiscal year that ended on December 31, 2020, December 31, 2018, and December 31, 2019, respectively. Question 17 5.55 pts Use the information in the schedule of the components of Facebook's deferred tax assets and liabilities to estimate the difference in depreciation expense taken for tax purposes and for financial reporting (i.e. GAAP) purposes during the fiscal year that ended on December 31, 2020. Your answer should be in millions of dollars; and, if depreciation for tax purposes is greater than (less than) depreciation per GAAP, you should enter your answer as a positive (negative) amount. Question 18 5.65 pts Use the information in the schedule of the components of Facebook's deferred tax assets and liabilities to estimate Facebook's cumulative net operating losses as of December 31, 2020. Your answer should be in millions of dollars. The components of income before provision for income taxes are as follows (in millions USD): Year Ended December 31, Domestic Foreign Income before provision for income taxes The provision for income taxes consisted of the following (in millions USD): Year Ended December 31, Current: Federal State Foreign Total current tax expense Deferred: Federal State Foreign Total deferred tax (benefits)/expense Provision for income taxes 2020 24,233 2019 2018 5,317 8,800 8,947 19,495 16,561 33,180 24,812 25,361 2020 2019 2018 3,297 4,321 1,747 523 565 176 1,211 1,481 1,031 5,031 6,367 2,954 -859 -39 316 -122 19 34 -16 -20 -55 -997 -40 295 4,034 6,327 3,249 A reconciliation of the U.S. federal statutory income tax rates to our effective tax rate is as follows (in percentages): Year Ended December 31, U.S. federal statutory income tax rate State income taxes, net of federal benefit Research and development tax credits Share-based compensation Excess tax benefits related to share-based compensation Foreign-derived intangible income deduction Effect of non-U.S. operations Non-deductible FTC settlement accrual Research and development capitalization Other Effective tax rate 2020 2019 2018 21.00% 21.00% 21.00% 0.80% 1.80% 0.70% -1.30% -0.80% -1.00% 0.20% 4.50% 0.30% -1.60% -0.70% -2.60% -1.90% 0.00% 0.00% -2.40% -5.80% -5.90% 0.00% 4.50% 0.00% -3.00% 0.00% 0.00% 0.40% 1.00% 0.30% 12.20% 25.50% 12.80% Our deferred tax assets (liabilities) are as follows (in millions USD): December 31, Deferred tax assets: Net operating loss carryforward Tax credit carryforward Share-based compensation Accrued expenses and other liabilities Lease liabilities Capitalized research and development Other Total deferred tax assets Less: valuation allowance Deferred tax assets, net of valuation allowance Deferred tax liabilities: Depreciation and amortization Right-of-use assets Total deferred tax liabilities Net deferred tax assets 2020 2019 2,437 2,051 1,055 1,333 243 135 1,108 798 2,058 1,999 1,922 0 340 149 9,163 6,465 -1,218 -1,012 7,945 5,453 -3,811 -2,387 -1,876 -1,910 -5,687 -4,297 2,258 1,156 When answering questions 13 through 18, please show your supporting calculations in the worksheet named Facebook Inc Tax. Note that the combined federal, state, and international tax rate was 19.4%, 17.0%, and 15.8% in the fiscal year that ended on December 31, 2020, December 31, 2018, and December 31, 2019, respectively.
Expert Answer:
Answer rating: 100% (QA)
Answer Question 17 To estimate the difference in depreciation expense taken for tax purposes and for ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
In Problem 10.16, we projected financial statements for Walmart Stores, Inc. (Walmart) for Years +1 through +5. The data in Exhibits 12.17-12.19 (pages 948-950) include the actual amounts for 2012...
-
a) This question places you in the position of a computer network manager required to develop an IPv4 addressing scheme for the VLAN part of the topology given in Figure 1, fulfilling all...
-
Describe the impact of mobile computing upon your business and project its impact in the future. Do the same for social media. In both cases, when considering impacts, consider how each technology...
-
According to the National Survey of Student Engagement, the average student spends about 17 hours each week preparing for classes; preparation for classes includes homework, reading and any other...
-
A battery for a proposed electric car is to have three hundred 3-V lithium ion cells connected such that the total voltage across all of the cells is 300 V. Describe a possible connection...
-
Investigate the file search facility on your computer. Which type of search method do you think it uses? Why do you think this partic ular search method was chosen? What problems could this approach...
-
On January 1, 2014, Doug Nelson Co. leased a building to Patrick Wise Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. 2. The leased...
-
How can conflict resolution principles and methodologies be adapted to address environmental conflicts, such as disputes over natural resource management, land use, and climate change adaptation ?
-
Harry and Colleen are in their late 40s and married. They are both employed in the computer industry, Colleen working on a Help Desk and Harry as an instalier of mainframes. Colleen is a member of...
-
An electron travels in a circle perpendicular to a magnetic field. (Recall m = 9.1x10 -31 kg and qe = 1.6x10 -19 C.) The speed of the electron is 200m/s and the radius of the circle is 0.1m....
-
Using BLS data, make a table comparing the changes in employment, unemployment rate, and the level of average hourly wage since the onset of the Great Recession in 2008. Discuss three specific ways...
-
Prepare a statement of retained earnings for the three months ended December 31, 2021. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended December 31, 2021 Retained earnings,...
-
Using the financial data in the table below, compute Net Cash Flows from Investing Activities for Investco-2, Inc. for Year-2. Year-1 Year-2 Cash 18,760 19,450 Accounts receivable 337,680 311,200...
-
Stangl Incorporated has provided the following data for the month of September. There were no beginning inventories, consequently, the direct materials, direct labor, and manufacturing overhead...
-
You are working as member of the external audit team that is auditing the financial 2014 financial statements of the Rockwood Corporation Your team has already started an ACL project for this...
-
Carlton Stokes owns and operates a car-detailing business named SuperShine & Detailing. For $150, Carltons business will hand wash and wax customers cars, vacuum the interior, and thoroughly clean...
-
Prime Contractors (Prime) is a privately owned company that contracts with the U.S. government to provide various services under multiyear (usually five-year) contracts. Its principal services are as...
-
Whirlpool manufactures and sells home appliances under various brand names. IBM develops and manufactures computer hardware and offers related technology services. Target operates a chain of general...
-
Bed and Breakfast (B&B), an Italian company operating in the Tuscany region, follows IFRS and has made the choice to remeasure long-lived assets at fair value. B&B purchased land in 2013 for...
-
Define torsional section modulus.
-
An inverted \(T\)-beam of \(4 \mathrm{~m}\) span is simply supported at the ends. Its cross-section is 300 \(\mathrm{mm} \times 250 \mathrm{~mm} \times 10 \mathrm{~mm}\). If permissible stresses in...
-
A rolled steel joist \(400 \mathrm{~mm} \times 200 \mathrm{~mm} \times 20 \mathrm{~mm}\) is freely supported on a span of \(4 \mathrm{~m}\). The flanges are strengthened by two \(250 \mathrm{~mm}...
Study smarter with the SolutionInn App