Question

The following is an excerpt from Walmart's 2015 Form 10-K A summary of the provision for income taxes is as follows ($ millions):

Current: U.S. federal $6,276
U.S. state and local 810
International 1,529
Total current tax provision 8,615
Deferred: U.S. federal (409)
U.S. state and local (55)
International (77)
Total deferred tax expense (benefit) $(541)

a. What amount of income tax expense does Walmart report in its income statement for 2015?
b. How much of Walmart's income tax expense was determined from the company's tax returns?
c. How did deferred taxes affect Walmart's tax expense for the year? Deferred taxes increased Walmart's income tax provision for the year. Deferred taxes decreased Walmart's income tax provision for the year. Deferred taxes did not affect Walmart's income tax provision for the year.

Answer 1

a. The mount of income tax expense does Walmart report in its income statement for 2015 was $8,074

b. The amount of Walmart's income tax expense that was determined from the company's tax returns is $8,615

c. Deferred taxes decreased Walmart's income tax provision for the year

Step-by-step explanation:

a. In order to calculate what amount of income tax expenses does Walmart report in its income statement for 2015, we would have to use the following formula:

Income tax expenses= Current year income taxes + Deferred tax expense

Income tax expenses=$8,615-$541

Income tax expenses=$8,074

b. The amount of Walmart's income tax expense that was determined from the company's tax returns is $8,615. This are the Total current tax provision.

c. Deferred taxes decreased Walmart's income tax provision for the year becuase the Deferred taxes are benefit.