Question
The table below shows the earnings and tax information for three international reporting segments of an international company for 2013. What is the total consolidated
The table below shows the earnings and tax information for three international reporting segments of an international company for 2013.
What is the total consolidated after tax earnings for the company? (Hint: Taxes are paid in the foreign country, before any currency exchanges occur.)
If the U.S. dollar had depreciated by 10% over the year, what would the appropriate exchange rates be?
What would be the new after tax earnings for the company given the new exchange rates from part b?
By what percent did after tax earnings decrease or increase due to the 10% depreciation of the U.S. dollar?
USA | Canada | Japan | |
Earnings before taxes | $3,800 | C$7,800 | JPY93,750 |
Income tax rate | 34% | 42% | 20% |
Average exchange rate | C$0.98/US$ | JPY74/US$ |
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