Estimate the cash outlays for charges

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Reference no: EM13208050

Campbell Soup Company

Required:

a. Estimate the amount of depreciation expense reported on Campbell's tax returns for each of the years 11,10, and 9. Use tax return of 34%

b. Identify the amounts and sources in each of the years 11, 10 and 9 for the following (note: combine federal, foreign, and state

(1) Earnings before income taxes

(2) Expected income tax at 34%

(3) Total income tax expense.

(4) Total Income tax due

(5) Total income tax due and not yet paid at end of years 11,10 and 9.

c. Why does the effective tax rate for the years 11, 10 and 9 differ from 34%  of income before taxes ? Answer with a reconciliation included explanations.

d. There is a small tax benefit derived from the divestiture and restructuring charges in year 10. Can you estimate the cash outlays for these charges in year 10?

Reference no: EM13208050

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