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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Using the information provided for Global, prepare the company's
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 | % | % |

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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