Target Case
• LO16-1, LO16-2, LO16-4, LO16-8, LO16-9
Real World Financials
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This material also is available under the Investor Relations link at the company’s website (www.target.com).
Required:
1. From the income statement, determine the income tax expense for the most recent year. Tie that number to the second table in disclosure Note 23, “Provision for Income Taxes,” and prepare a summary
2. Focusing on the third table in disclosure Note 23, “Net
3. Target’s Note 23 indicates that “We have not recorded
4. What is Target’s liability for unrecognized tax benefits as of January 30, 2016? If Target were to prevail in court and realize $50 million more in tax savings than it thought more likely than not to occur, what would be the effect on the liability for unrecognized tax benefits and on net income?
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INTERMEDIATE ACCOUNTING +ACCLL
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