Using the information provided for Global, prepare the company's journal entry to record income taxes for 2012 and 2011. Round your answers to two decimal places. If an amount box does not require an entry, leave it blank. Using the information provided for Global, determine the company's effective tax rate for 2012 and 2011. Round your answers to two decimal places.   2012 2011 Effective tax rate  %  %

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 19P
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Using the information provided for Global, prepare the company's journal entry to record income taxes for 2012 and 2011. Round your answers to two decimal places. If an amount box does not require an entry, leave it blank.

Using the information provided for Global, determine the company's effective tax rate for 2012 and 2011. Round your answers to two decimal places.

  2012 2011
Effective tax rate  %  %



Global, Inc. provides consulting services throughout the world. The company pays taxes to the nation where revenues are earned. Information about the company's taxes is presented below:
Global, Inc.
Components of Income Tax Expense
(in millions)
2012
2011
Current - Federal
$ 35.60
$ 29.80
- Foreign
- State and Local
53.86
65.85
17.15
15.28
Total Current
$106.61
$110.93
Deferred - Federal
$ 10.56
S 8.54
- Foreign
3.28
6.57
Total Deferred
$ 13.84
$ 15.11
Total Income Tax Expense
$120.45
$126.04
Components of Income before Taxes
2012
2011
United States
$155.45
$150.29
Foreign
142.85
134.50
Total
$298.30
$284.79
Required:
Hide
a. Using the information provided for Global, prepare the company's journal entry to record income taxes for 2012 and 2011. Round your answers to two decimal places. If an
amount box does not require an entry, leave it blank.
2012
2011
b. Using the information provided for Global, determine the company's effective tax rate for 2012 and 2011. Round your answers to two decimal places.
2012
2011
Effective tax rate
9%
96
Transcribed Image Text:Global, Inc. provides consulting services throughout the world. The company pays taxes to the nation where revenues are earned. Information about the company's taxes is presented below: Global, Inc. Components of Income Tax Expense (in millions) 2012 2011 Current - Federal $ 35.60 $ 29.80 - Foreign - State and Local 53.86 65.85 17.15 15.28 Total Current $106.61 $110.93 Deferred - Federal $ 10.56 S 8.54 - Foreign 3.28 6.57 Total Deferred $ 13.84 $ 15.11 Total Income Tax Expense $120.45 $126.04 Components of Income before Taxes 2012 2011 United States $155.45 $150.29 Foreign 142.85 134.50 Total $298.30 $284.79 Required: Hide a. Using the information provided for Global, prepare the company's journal entry to record income taxes for 2012 and 2011. Round your answers to two decimal places. If an amount box does not require an entry, leave it blank. 2012 2011 b. Using the information provided for Global, determine the company's effective tax rate for 2012 and 2011. Round your answers to two decimal places. 2012 2011 Effective tax rate 9% 96
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