Kroger Co. is one of the largest retail food companies in the United States as measured by
Question:
Kroger Co. is one of the largest retail food companies in the United States as measured by total annual sales. The Kroger Co. operates supermarkets, convenience stores, and manufactures and processes food that its supermarkets sell.
Using EDGAR (sec.gov) or the company's website (kroger.com), check the company's annual report for the year ended February 1, 2020.
Required:
From Kroger's Note 5, calculate the total net deferred tax asset or liability as of February 1, 2020, and February 2, 2019. By how much did that amount change? To what extent did you account for that change in the journal entry you wrote for the first requirement of this case? Speculate as to the explanation of any difference.
those are my calculations. I need help with requirement 2.
Accounts | Amounts(in millions) | |||||
Earnings before tax | 3370 | |||||
Net Earnings | 2588 | |||||
Current Federal Taxes | 577 | |||||
Current state taxes | 133 | |||||
Deferred federal taxes | 75 | |||||
Deferred state taxes | (3) | |||||
Requirement I | ||||||
In Millions | ||||||
Earnings before taxes | 3,370 | |||||
Less: net earnings | 2588 | |||||
Income Tax expense | 782 | |||||
Current Federal taxes | 577 | |||||
Add current state taxes | 133 | |||||
Total current tax payable | 710 | |||||
Date | Particulars | Debit | Credit | |||
Deferred federal taxes | 75 | 1-Feb | Income tax Expense | 782 | ||
Add Deferred state taxes | (3) | Deferred Tax Liability | 72 | |||
Deferred Taxes | 72 | Income tax payable | 710 | |||
To record Income tax payable | ||||||
Requirement 2 | ||||||
2020 | ||||||
In Millions | ||||||
Deferred federal taxes | 75 | |||||
Add Deferred state taxes | (3) | |||||
Deferred Tax Asset | 72 | |||||
2019 | ||||||
Deferred federal taxes | (50) | |||||
Add Deferred state taxes | (5) | |||||
Deferred Tax Liability | (55) |
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson