9th Edition

ISBN: 9781260216141

Author: SPICELAND

Publisher: MCG CUSTOM

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Textbook Question

Chapter 16, Problem 16.7BYP

Analysis Case 16–7

Reporting deferred taxes; Ford Motor Company

• LO16–1, LO16–2, LO16–3, LO16–7

Real World Financials

Access the 2015 financial statements and related disclosure notes of Ford Motor Company from its website at corporate.ford.com.

Required:

1. In Note 21, find Ford’s net deferred tax asset or liability. What is that number?

2. Does Ford show a valuation allowance against deferred tax assets? If so, what is the number, and what is Ford’s explanation for it?

3. Does Ford have any NOL carryforwards? What is the amount of any carryforward, what deferred tax asset or liability is associated with it, and what effective tax rate does that imply was used to calculate its deferred tax effect?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 16, Problem 16.6BYP

Chapter 16, Problem 16.8BYP

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Chapter 16 Solutions

INTERMEDIATE ACCOUNTING(LL)-W/CONNECT

Ch. 16 - Prob. 16.1Q Ch. 16 - A deferred tax liability (or asset) is described...Ch. 16 - Prob. 16.3Q Ch. 16 - Prob. 16.4Q Ch. 16 - Temporary differences result in future taxable or...Ch. 16 - Identify three examples of differences with no...Ch. 16 - The income tax rate for Hudson Refinery has been...Ch. 16 - Suppose a tax reform bill is enacted that causes...Ch. 16 - A net operating loss occurs when tax-deductible...Ch. 16 - Prob. 16.10Q

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Solution Summary: The author explains that deferred tax is computed on the basis of tax liability and income as per tax return. Valuation Allowance and Net Operating Loss are considered non-current items.

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