The components of income before tax were:Years ended December 31 ($ millions) 2018U.S.Non-U.S.Total20172016$12,283 $10,626 $5,925482492 437$12,765 $11,118 $6,362Income tax expense/(benefit) consisted of the following:Years ended December 31 ($ millions)Current tax expenseU.S. federal2017 2016Non-U.S.U.S. StateTotal current$1,967 $1,340 $1,253$169 $149 $133972315Deferred tax expenseU.S. federal$2,233 $1,512 $1,401$224 $(598)$(1,096)Non-U.S.$(4)$3 $(4)U.S. State5(6)(44)Total deferred$(1,095)$221$(646) a. What is the amount of income tax expense reported by Boeing each year?Year ($ millions)2018 $02017 $02016 $0b. What percentage of total tax expense is currently payable for each year?Round percentage to one decimal place (example: 0.7345 = 73.5%).Year20180%20170%20160%c. What is Boeing's effective (average) tax rate for each year?Round percentage to one decimal place (example: 0.7345 = 73.5%).Year20180%201720160%0%d. Use the pretax information to determine the effective tax rate for U.S. federal and Non-U.S. operations for each year.Round percentage to one decimal place (example: 0.7345 = 73.5%).Year U.S. federalNon-U.S.20180%0%20170%0%20160%0%e. Determine the cash tax rate for U.S. operations for each year. Hint: Current tax expense is paid in cash.Round percentage to one decimal place (example: 0.7345 = 73.5%).Year20180%20170%20160%

"Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

The components of income before tax were: Years ended December 31 ($ millions) 2018 U.S. Non-U.S. Total 2017 2016 $12,283 $10,626 $5,925 482 492 437 $12,765 $11,118 $6,362 Income tax expense/(benefit) consisted of the following:

The components of income before tax were: Years ended December 31 ($ millions) 2018 U.S. Non-U.S. Total 2017 2016 $12,283 $10,626 $5,925 482 492 437 $12,765 $11,118 $6,362 Income tax expense/(benefit) consisted of the following:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

The components of income before tax were:
Years ended December 31 ($ millions) 2018
U.S.
Non-U.S.
Total
2017
2016
$12,283 $10,626 $5,925
482
492 437
$12,765 $11,118 $6,362
Income tax expense/(benefit) consisted of the following:
Years ended December 31 ($ millions)
Current tax expense
U.S. federal
2017 2016
Non-U.S.
U.S. State
Total current
$1,967 $1,340 $1,253
$169 $149 $133
97
23
15
Deferred tax expense
U.S. federal
$2,233 $1,512 $1,401
$224 $(598)
$(1,096)
Non-U.S.
$(4)
$3 $(4)
U.S. State
5
(6)
(44)
Total deferred
$(1,095)
$221
$(646)

a. What is the amount of income tax expense reported by Boeing each year?
Year ($ millions)
2018 $
0
2017 $
0
2016 $
0
b. What percentage of total tax expense is currently payable for each year?
Round percentage to one decimal place (example: 0.7345 = 73.5%).
Year
2018
0%
2017
0%
2016
0%
c. What is Boeing's effective (average) tax rate for each year?
Round percentage to one decimal place (example: 0.7345 = 73.5%).
Year
2018
0%
2017
2016
0%
0%
d. Use the pretax information to determine the effective tax rate for U.S. federal and Non-U.S. operations for each year.
Round percentage to one decimal place (example: 0.7345 = 73.5%).
Year U.S. federal
Non-U.S.
2018
0%
0%
2017
0%
0%
2016
0%
0%
e. Determine the cash tax rate for U.S. operations for each year. Hint: Current tax expense is paid in cash.
Round percentage to one decimal place (example: 0.7345 = 73.5%).
Year
2018
0%
2017
0%
2016
0%

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