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what is the US Federal effective tax rate for each year? Analyzing and Interpreting Income Tax Disclosures The income tax footnote to the 2018 financial
what is the US Federal effective tax rate for each year?
Analyzing and Interpreting Income Tax Disclosures 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. $11.724 $10,143 $5,655 Non-U.S. 460 469 417 Total $12.184 $10,612 $6,072 Income tax expense/benefit) consisted of the following: Years ended December 31 ($ millions) 2018 2017 2016 Current tax expense U.S. federal $2,060 $1,404 $1,312 Non-U.S. $169 $149 $133 U.S. State 97 23 15 Total current $2,326 $1,576 $1,460 Deferred tax expense U.S. federal $(1.046) $214 $(571) Non-U.S. $(4) $3 $(4) U.S. State (6) Total deferred $(1.045) $211 $(619) a. What is the amount of income tax expense reported by Boeing each year? Year (5 millions) 2018.5 1.281 2017 1.787 2016 841 2018 2017 2016 10.5% 16.8M 13.9% 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-US 2018 95% X 35.9% 2017 16.1% X 32.4% 2016 12.6% X 30.9% 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 18.45 2017 14.18 2016 23.5 Check Partially correct Marks for the submission 15.00/1800 Step by Step Solution
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