Need help with the attcahed questions with respect to the attached 10k.
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1. HP reports income tax expense of $699 million in its 2004 income statement and describes its income tax expense in Note 12 (pp. 121-124).
a. The company reports that it increased its valuation allowance for deferred tax assets by $47 million. What effect, if any, did this increase have on 2004 net income?
b. HP reports a deferred tax asset labeled "employee and retirement benefits." Briefly explain what caused this deferred tax asset to arise.
c. HP reports a deferred tax liability of $2.347 billion relating to "unremitted earnings of foreign subsidiaries."
i. Briefly explain how this liability arose.
ii. What effect, if any, does the recording of a deferred tax liability on unremitted earnings have on current profitability?
2. HP reports its investment in debt and equity securities in Note 8 (p.112). The company reports an unrecognized gain on equity securities in public companies of $40 million in 2004. By what amount, if any, did this unrecognized gain affect 2004 profit and why?
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Need help with the attcahed questions with respect to the attached 10k.
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1. HP reports income tax expense of $699 million in its 2004 income statement and describes its income tax expense in Note 12 (pp. 121-124).
a. The company reports that it increased its valuation ...
Solution Summary
This explains the concepts related to deferred tax liability by taking the example of HP
... will be taxable, a deferred tax liability is recognized ... year for the related taxes payable in ... A deferred tax asset is recognized for temporary differences that ...
... be sufficient to reduce the deferred tax asset to the ...Deferred tax liabilities and assets are analyzed ... The objectives of accounting for income taxes in general ...
Deferred Tax liability - Reaker Company. ... The total deferred tax liability to be reported on Reaker's balance sheet at December 31, 2008, is. Hello,. ...
...tax expense on the income statement to be in agreement with income taxes payable on ... 18. Interperiod tax allocation results in a deferred tax liability from a ...
... required to pay more in taxes 3,400 (34% x 10,000) in taxes than the amount of income tax expense it ... Therefore, Allison has a deferred tax asset of $3,400. ...
... As on Dec 31, 2005: There is no deferred tax so there is no ... c) Draft the income tax expense section ... for each year, beginning with "Income before income taxes.". ...
... Accounting for Income Taxes & Pension Plans. ... For the year ended Jan 31, 2009 in $ '000 Deferred tax asset 110,098 Deferred tax liability 189,268. ...
... the liability method to account for deferred income taxes; SFAS No. ... As a result, organizations computed a net deferred tax asset or liability based on ...
