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Margaret [11]
3 years ago
14

P10-45. Analyzing and Interpreting Effects of TCJA Tax Law Changes. Pfizer Inc. reports the following footnote disclosure in its

2018 Form 10-K. The following table provides the components of Income from continuing operations before provision (benefit) for taxes on income: Year Ended December 31, $ millions 2018 2017 2016 United States $(4,403) $(6,879) $(8,534) International 16,288 19,184 16,886 Income from continuing operations before provision of taxes… 11,885 12,305 8,351 The following table provides the components of Provision (benefit) for taxes on income based on the location of the taxing authorities: $ millions 2018 2017 2016 United States Current income taxes: Federal $668 $1,267 $342 State and Local 9 45 (52) Deferred income taxes: Federal (1,663) (2,064) (419) State and local 16 (304) (106) Total U.S. tax provision (970) (1,055) (235) TCJA Current income taxes (3,035) 13,135 - Deferred income taxes 2,439 (23,795) - Total TCJA tax provision (596) (10,660) - International Current income taxes 2,831 2,709 1,532 Deferred income taxes (558) (42) (175) Total international tax provision 2,273 2,667 1,358 a.In the fourth quarter of 2017, we recorded an estimate of certain tax effect of the TCJA, including (i) the impact of deferred tax assets and liabilities from reduction in the U.S. Federal corporate tax rate from 35% to 21%, (ii) the impact on valuation allowances and other state income tax considerations, (iii) the $15.2 billion repatriation tax liability on accumulated post-1986 foreign earnings for which we plan to elect, with the filing of our 2018 U.S. Federal Consideration Income Tax Return, payments over eight years through 2026 that is reported in Other taxes payable in our consolidated balance sheet as of December 31, 2017 and (iv) deferred taxes on basis differences expected to give rise to future taxes on global intangible low-taxed income. As a result of the TCJA, in the fourth quarter of 2017, we reversed an estimate of the deferred taxes that are no longer expected to be needed due to the change to the territorial tax system. Required. What is the amount of the income tax expense reported by Pfizer for each year? What amount is current versus deferred? What is Pfizer’s effective (average) tax rate for each year? Use the pretax information to determine the effective tax rate for U.S. operations for each year. The footnotes include amounts related to the TCJA of 2017. What was the effect on the company’s tax expense in 2017 and 2018 due to the TCJA? Pfizer lists four TCJA items that impacted their 2017 tax provision. Explain how each of the four items might have affected Pfizer’s 2017 tax expens
Business
1 answer:
forsale [732]3 years ago
5 0
Woahhhh that’s a lot !!
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Acquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its
klemol [59]

Answer:

The acquisition cost is $38140

Explanation:

acquisiton cost = invoice price + applicable sales tax - cash discount + freight paid + cost of insurance + installation cost +testing and adjusting costt                

= $34000 + $2000 - $400 + $260 + $125 + $2000 + $425

= $38410

Therefore, The acquisition cost is $38140.

6 0
3 years ago
7. DuPont Identity. X Corp. has net income of $20 million, Sales of $100 million, asset turnover of .6, and debt-equity ratio of
goldfiish [28.3K]

Answer:

Explanation:

Net Income = 20m

Sales = 100m

Debt-equity ration = 40%

Asset turnover = 0.60

A)

Profit Margin = Net Income / Sales  = $20 million / $100 million  = 20%

Equity Multiplier = 1 + Debt-Equity Ratio  = 1 + 0.40  = 1.40

Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier               = 20% * 0.60 * 1.40  = 16.80%

B)

Debt-equity ratio = 60%

Equity Multiplier = 1 + Debt-Equity Ratio  = 1 + 0.60  = 1.60

Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier  = 20% * 0.60 * 1.60 = 19.20%

As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)

7 0
2 years ago
On November 1, 2019, Davis Company issued $30,000, ten-year, 7% bonds for $29,100. The bonds were dated November 1, 2019, and in
Tcecarenko [31]

Answer: A.) $1,095

Explanation:

Bond value = $30,000

Rate = 7%

Period = 10 years

Issue price = $29,100

Bond value × rate :

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Semi annually:

$2100 / 2 = $1050

(Bond value - issue price) ÷ (period × 2)

($30,000 - $29,100) / (10 × 2)

$900 ÷ 20 = $45

$1050 + $45 = $1,095

8 0
2 years ago
A tariff or quota will _____ prices and _____ the consumption of the protected goods in the importing country.
Vadim26 [7]
Raise;decrease is the answer to this question
3 0
2 years ago
Read 2 more answers
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,360,000 (240,00
mixer [17]

Answer:

Option (C) is correct.

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Given that,

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Estimated direct labor hours = 240,000

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= $6.42 per direct labor hour

6 0
2 years ago
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