Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income tax footnote to the 2018 financial statements for Boeing follows. The components of income before tax were: Years ended December 31 ($ millions)
The income tax footnote to the 2018 financial statements for Boeing follows. The components of income before tax were: Years ended December 31 ($ millions) 2018 2017 2016 U.S. Non-U.S. Total $10,049 $8,694 $4,847 394 402 357 $10,443 $9,096 $5,204 Income tax expense/(benefit) consisted of the following: Years ended December 31 ($ millions) 2018 2017 2016 Current tax expense U.S. federal Non-U.S. U.S. State $1,592 $1,085 $1,014 $169 $149 $133 97 23 15 Total current Deferred tax expense $1,858 $1,257 $1,162 U.S. federal Non-U.S. U.S. State Total deferred $(896) $184 $(490) $(4) $3 $(4) 5 (6) (44) $(895) $181 $(538) a. What is the amount of income tax expense reported by Boeing each year? Year ($millions) 2018 $ 963 2017 $ 1,076 2016 $ 624 b. What percentage of total tax expense is currently payable for each year? Round percentage to one decimal place (example: 0.7345 = 73.5%). Year 2018 193 % 2017 116.8% 2016 53.7 % c. What is Boeing's effective (average) tax rate for each year? Round percentage to one decimal place (example: 0.7345 = 73.5%). Year 2018 9.2% 2017 2016 11.8% 12% d. Use the pretax information to determine the effective tax rate for U.S. federal and Non-U.S. operations for each year. Round percentage to one decimal place (example: 0.7345 = 73.5%). Year U.S. federal Non-U.S. 2018 0% 0% 2017 0% 0% 2016 0% 0% e. Determine the cash tax rate for U.S. operations for each year. Hint: Current tax expense is paid in cash. Round percentage to one decimal place (example: 0.7345 = 73.5%). Year 2018 0% 2017 0% 2016 0%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started