effective tax rate of company W and difference between effective tax rate and statutory tax rate. Given Information: Effective tax rate for year 2013 is 32.9%. Effective tax rate for 2012 is 31%. Effective tax rate for 2011 is 32.6%. Statutory tax rate is 35%.

Question

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Answer 1

Question

Chapter 17, Problem 1FSAC

a.

To determine

effective tax rate of company W and difference between effective tax rate and statutory tax rate.

Given Information:

Effective tax rate for year 2013 is 32.9%.

Effective tax rate for 2012 is 31%.

Effective tax rate for 2011 is 32.6%.

Statutory tax rate is 35%.

b.

To determine

To compare: Effective tax rate of company T.

Given Information:

Effective tax rate of company T for year 2011 is 34.30%.

For year 2012 is 34.90%.

For year 2013 is 36.50%.

c.

To determine

Conservatism ratio for each year.

Given Information:

Income before tax for 2011 is $24,332.

For year 2012 is $25,662.

For year 2013 is $24,656.

d.

To determine

implications for computing the conservatism ratio.

Given Information:

Income from discontinued operation in fiscal year 2012 is $52 million.

Income from discontinued operation in fiscal year 2013 is $144 million.

e.

To determine

To Compare: Conservatism ratio of company T and company W.

Given Information:

Conservatism ratio of company T for year 2011 is 1.32.

For year 2012 is 0.99.

For year 2013 is 0.82.

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Answer 2

Question

Chapter 17, Problem 1FSAC

a.

To determine

effective tax rate of company W and difference between effective tax rate and statutory tax rate.

Given Information:

Effective tax rate for year 2013 is 32.9%.

Effective tax rate for 2012 is 31%.

Effective tax rate for 2011 is 32.6%.

Statutory tax rate is 35%.

b.

To determine

To compare: Effective tax rate of company T.

Given Information:

Effective tax rate of company T for year 2011 is 34.30%.

For year 2012 is 34.90%.

For year 2013 is 36.50%.

c.

To determine

Conservatism ratio for each year.

Given Information:

Income before tax for 2011 is $24,332.

For year 2012 is $25,662.

For year 2013 is $24,656.

d.

To determine

implications for computing the conservatism ratio.

Given Information:

Income from discontinued operation in fiscal year 2012 is $52 million.

Income from discontinued operation in fiscal year 2013 is $144 million.

e.

To determine

To Compare: Conservatism ratio of company T and company W.

Given Information:

Conservatism ratio of company T for year 2011 is 1.32.

For year 2012 is 0.99.

For year 2013 is 0.82.

Expert Solution & Answer

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Answer 3

Question

Chapter 17, Problem 1FSAC

a.

To determine

effective tax rate of company W and difference between effective tax rate and statutory tax rate.

Given Information:

Effective tax rate for year 2013 is 32.9%.

Effective tax rate for 2012 is 31%.

Effective tax rate for 2011 is 32.6%.

Statutory tax rate is 35%.

b.

To determine

To compare: Effective tax rate of company T.

Given Information:

Effective tax rate of company T for year 2011 is 34.30%.

For year 2012 is 34.90%.

For year 2013 is 36.50%.

c.

To determine

Conservatism ratio for each year.

Given Information:

Income before tax for 2011 is $24,332.

For year 2012 is $25,662.

For year 2013 is $24,656.

d.

To determine

implications for computing the conservatism ratio.

Given Information:

Income from discontinued operation in fiscal year 2012 is $52 million.

Income from discontinued operation in fiscal year 2013 is $144 million.

e.

To determine

To Compare: Conservatism ratio of company T and company W.

Given Information:

Conservatism ratio of company T for year 2011 is 1.32.

For year 2012 is 0.99.

For year 2013 is 0.82.

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Answer 4

Question

Chapter 17, Problem 1FSAC

a.

To determine

effective tax rate of company W and difference between effective tax rate and statutory tax rate.

Given Information:

Effective tax rate for year 2013 is 32.9%.

Effective tax rate for 2012 is 31%.

Effective tax rate for 2011 is 32.6%.

Statutory tax rate is 35%.

b.

To determine

To compare: Effective tax rate of company T.

Given Information:

Effective tax rate of company T for year 2011 is 34.30%.

For year 2012 is 34.90%.

For year 2013 is 36.50%.

c.

To determine

Conservatism ratio for each year.

Given Information:

Income before tax for 2011 is $24,332.

For year 2012 is $25,662.

For year 2013 is $24,656.

d.

To determine

implications for computing the conservatism ratio.

Given Information:

Income from discontinued operation in fiscal year 2012 is $52 million.

Income from discontinued operation in fiscal year 2013 is $144 million.

e.

To determine

To Compare: Conservatism ratio of company T and company W.

Given Information:

Conservatism ratio of company T for year 2011 is 1.32.

For year 2012 is 0.99.

For year 2013 is 0.82.

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 1FSAC

a.

To determine

effective tax rate of company W and difference between effective tax rate and statutory tax rate.

Given Information:

Effective tax rate for year 2013 is 32.9%.

Effective tax rate for 2012 is 31%.

Effective tax rate for 2011 is 32.6%.

Statutory tax rate is 35%.

b.

To determine

To compare: Effective tax rate of company T.

Given Information:

Effective tax rate of company T for year 2011 is 34.30%.

For year 2012 is 34.90%.

For year 2013 is 36.50%.

c.

To determine

Conservatism ratio for each year.

Given Information:

Income before tax for 2011 is $24,332.

For year 2012 is $25,662.

For year 2013 is $24,656.

d.

To determine

implications for computing the conservatism ratio.

Given Information:

Income from discontinued operation in fiscal year 2012 is $52 million.

Income from discontinued operation in fiscal year 2013 is $144 million.

e.

To determine

To Compare: Conservatism ratio of company T and company W.

Given Information:

Conservatism ratio of company T for year 2011 is 1.32.

For year 2012 is 0.99.

For year 2013 is 0.82.

Answer 6

Chapter 17, Problem 1FSAC

a.

To determine

effective tax rate of company W and difference between effective tax rate and statutory tax rate.

Given Information:

Effective tax rate for year 2013 is 32.9%.

Effective tax rate for 2012 is 31%.

Effective tax rate for 2011 is 32.6%.

Statutory tax rate is 35%.

Answer 7

Chapter 17, Problem 1FSAC

a.

To determine

effective tax rate of company W and difference between effective tax rate and statutory tax rate.

Given Information:

Effective tax rate for year 2013 is 32.9%.

Effective tax rate for 2012 is 31%.

Effective tax rate for 2011 is 32.6%.

Statutory tax rate is 35%.

Answer 8

b.

To determine

To compare: Effective tax rate of company T.

Given Information:

Effective tax rate of company T for year 2011 is 34.30%.

For year 2012 is 34.90%.

For year 2013 is 36.50%.

Answer 9

b.

To determine

To compare: Effective tax rate of company T.

Given Information:

Effective tax rate of company T for year 2011 is 34.30%.

For year 2012 is 34.90%.

For year 2013 is 36.50%.

Answer 10

c.

To determine

Conservatism ratio for each year.

Given Information:

Income before tax for 2011 is $24,332.

For year 2012 is $25,662.

For year 2013 is $24,656.

Answer 11

c.

To determine

Conservatism ratio for each year.

Given Information:

Income before tax for 2011 is $24,332.

For year 2012 is $25,662.

For year 2013 is $24,656.

Answer 12

d.

To determine

implications for computing the conservatism ratio.

Given Information:

Income from discontinued operation in fiscal year 2012 is $52 million.

Income from discontinued operation in fiscal year 2013 is $144 million.

Answer 13

d.

To determine

implications for computing the conservatism ratio.

Given Information:

Income from discontinued operation in fiscal year 2012 is $52 million.

Income from discontinued operation in fiscal year 2013 is $144 million.

Answer 14

e.

To determine

To Compare: Conservatism ratio of company T and company W.

Given Information:

Conservatism ratio of company T for year 2011 is 1.32.

For year 2012 is 0.99.

For year 2013 is 0.82.

Answer 15

e.

To determine

To Compare: Conservatism ratio of company T and company W.

Given Information:

Conservatism ratio of company T for year 2011 is 1.32.

For year 2012 is 0.99.

For year 2013 is 0.82.

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 17 - Prob. 17.1Q Ch. 17 - When will income tax expense and income taxes...Ch. 17 - Will permanent differences cause the effective tax...Ch. 17 - When do permanent differences arise?Ch. 17 - How are deferred tax assets and deferred tax...Ch. 17 - Prob. 17.6Q Ch. 17 - Prob. 17.7Q Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - How does a firm determine the need for a valuation...

effective tax rate of company W and difference between effective tax rate and statutory tax rate. Given Information: Effective tax rate for year 2013 is 32.9%. Effective tax rate for 2012 is 31%. Effective tax rate for 2011 is 32.6%. Statutory tax rate is 35%.

effective tax rate of company W and difference between effective tax rate and statutory tax rate. Given Information: Effective tax rate for year 2013 is 32.9%. Effective tax rate for 2012 is 31%. Effective tax rate for 2011 is 32.6%. Statutory tax rate is 35%.

To compare: Effective tax rate of company T. Given Information: Effective tax rate of company T for year 2011 is 34.30%. For year 2012 is 34.90%. For year 2013 is 36.50%.

Conservatism ratio for each year. Given Information: Income before tax for 2011 is $24,332. For year 2012 is $25,662. For year 2013 is $24,656.

implications for computing the conservatism ratio. Given Information: Income from discontinued operation in fiscal year 2012 is $52 million. Income from discontinued operation in fiscal year 2013 is $144 million.

To Compare: Conservatism ratio of company T and company W. Given Information: Conservatism ratio of company T for year 2011 is 1.32. For year 2012 is 0.99. For year 2013 is 0.82.

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Chapter 17 Solutions

effective tax rate of company W and difference between effective tax rate and statutory tax rate.

Given Information:

Effective tax rate for year 2013 is 32.9%.

Effective tax rate for 2012 is 31%.

Effective tax rate for 2011 is 32.6%.

Statutory tax rate is 35%.

To compare: Effective tax rate of company T.

Given Information:

Effective tax rate of company T for year 2011 is 34.30%.

For year 2012 is 34.90%.

For year 2013 is 36.50%.

Conservatism ratio for each year.

Given Information:

Income before tax for 2011 is $24,332.

For year 2012 is $25,662.

For year 2013 is $24,656.

implications for computing the conservatism ratio.

Given Information:

Income from discontinued operation in fiscal year 2012 is $52 million.

Income from discontinued operation in fiscal year 2013 is $144 million.

To Compare: Conservatism ratio of company T and company W.

Given Information:

Conservatism ratio of company T for year 2011 is 1.32.

For year 2012 is 0.99.

For year 2013 is 0.82.