Target’s Note 23 indicates that “We have not recorded deferred taxes when earningsfrom foreign operations are considered to be indefinitely invested outside the U.S.These accumulated net earnings relate to certain ongoing operations and were $685 million at January 30, 2016 and $328 million at January 31, 2015.” Are theseamounts treated as temporary or permanent differences by Target? If Target decidesto repatriate earnings in the future, what will be the effect on net income in the yearof the repatriation?
Target’s Note 23 indicates that “We have not recorded deferred taxes when earningsfrom foreign operations are considered to be indefinitely invested outside the U.S.These accumulated net earnings relate to certain ongoing operations and were $685 million at January 30, 2016 and $328 million at January 31, 2015.” Are theseamounts treated as temporary or permanent differences by Target? If Target decidesto repatriate earnings in the future, what will be the effect on net income in the yearof the repatriation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Target’s Note 23 indicates that “We have not recorded
from foreign operations are considered to be indefinitely invested outside the U.S.
These
amounts treated as temporary or permanent differences by Target? If Target decides
to repatriate earnings in the future, what will be the effect on net income in the year
of the repatriation?
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