The income tax footnote to the financial statements of FedEx Corporation follows. The components of the...
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The income tax footnote to the financial statements of FedEx Corporation follows. The components of the provision for income taxes for the years ended May 31 were as follows: S millions 2016 2015 2014 Current provision (benefit) Domestic Federal $513 $795 $624 State and local 72 102 56 200 214 194 Foreign 785 1,111 874 Deferred provisions (benefit) Domestic Federal 155 (474) 360 State and local (18) (47) 82 Foreign (2) (13) 18 135 (534) 460 $920 $577 $1,334 (a)What is the amount of income tax expense reported in FedEx's 2016, 2015, and 2014 income statements? 2016 Income Tax Expense $ million 2015 Income Tax Expense = $ million 2014 Income Tax Expense = $ million (b) What percentage of total tax expense is currently payable in each year? Round your answers to the nearest percent. 2016 2015 2014 Which of the following statements best describes why the percentages of total tax expense are different each year? Differences in the percentage of income tax expense that is currently payable arise because of fluctuation in the amount of deferred income tax assets or liabilities. ODifferences in the percentage of income tax expense that is currently payable arise because tax laws change frequently. ODifferences in the percentage of income tax expense that is currently payable arise solely because of fluctuations in the amount of taxable income. ODifferences in the percentage of income tax expense that is currently payable arise because companies typically defer tax payments in periods of reduced cash flow. (C) Which of the following provides the best example that can give rise to an increase in the deferred tax liability? ODeferred tax liabilities arise in periods of higher taxable income. ODeferred tax liabilities generally arise because companies defer the payment of taxes in periods of low cash flow. Companies use an accelerated depreciation method for tax purposes that results in a lower taxable income in the earlier years of the assets life vis-à-vis net income on the financial accounting books, which reflect straight-line depreciation for GAAP purposes. ORestructuring accruals provide the best example of an event that gives rise to an increase in deferred tax liabilities. Check The income tax footnote to the financial statements of FedEx Corporation follows. The components of the provision for income taxes for the years ended May 31 were as follows: S millions 2016 2015 2014 Current provision (benefit) Domestic Federal $513 $795 $624 State and local 72 102 56 200 214 194 Foreign 785 1,111 874 Deferred provisions (benefit) Domestic Federal 155 (474) 360 State and local (18) (47) 82 Foreign (2) (13) 18 135 (534) 460 $920 $577 $1,334 (a)What is the amount of income tax expense reported in FedEx's 2016, 2015, and 2014 income statements? 2016 Income Tax Expense $ million 2015 Income Tax Expense = $ million 2014 Income Tax Expense = $ million (b) What percentage of total tax expense is currently payable in each year? Round your answers to the nearest percent. 2016 2015 2014 Which of the following statements best describes why the percentages of total tax expense are different each year? Differences in the percentage of income tax expense that is currently payable arise because of fluctuation in the amount of deferred income tax assets or liabilities. ODifferences in the percentage of income tax expense that is currently payable arise because tax laws change frequently. ODifferences in the percentage of income tax expense that is currently payable arise solely because of fluctuations in the amount of taxable income. ODifferences in the percentage of income tax expense that is currently payable arise because companies typically defer tax payments in periods of reduced cash flow. (C) Which of the following provides the best example that can give rise to an increase in the deferred tax liability? ODeferred tax liabilities arise in periods of higher taxable income. ODeferred tax liabilities generally arise because companies defer the payment of taxes in periods of low cash flow. Companies use an accelerated depreciation method for tax purposes that results in a lower taxable income in the earlier years of the assets life vis-à-vis net income on the financial accounting books, which reflect straight-line depreciation for GAAP purposes. ORestructuring accruals provide the best example of an event that gives rise to an increase in deferred tax liabilities. Check
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Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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