Analyzing Tax ExpenseThe following is an excerpt from Walmart’s Form 10‑K for the fiscal year ended January 31, 2019.A summary of the provision for income taxes is as follows ($ millions):Current: U.S. federal$2,763U.S. state and local493International1,495Total current tax provision$4,751Deferred: U.S. federal$(361)U.S. state and local(16)International(93)Total deferred tax expense (benefit)$(470)Consider the deferred portion of Walmart’s tax provision. Which of the following is plausible?Hint: Consider the tax expense equation.a. Walmart’s deferred tax assets increased during the year.b. Walmart’s deferred tax liabilities decreased during the year.c. Both a and b are plausible.d. Neither a nor b is plausible.

Tax expense: An amount owing to a government agency by an individual or a commercial organization is…

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Analyzing Tax Expense

The following is an excerpt from Walmart’s Form 10‑K for the fiscal year ended January 31, 2019.

A summary of the provision for income taxes is as follows ($ millions):

Current:
U.S. federal	$2,763
U.S. state and local	493
International	1,495
Total current tax provision	$4,751
Deferred:
U.S. federal	$(361)
U.S. state and local	(16)
International	(93)
Total deferred tax expense (benefit)	$(470)

Consider the deferred portion of Walmart’s tax provision. Which of the following is plausible?
Hint: Consider the tax expense equation.

a. Walmart’s deferred tax assets increased during the year.
b. Walmart’s deferred tax liabilities decreased during the year.
c. Both a and b are plausible.
d. Neither a nor b is plausible.

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