Ann Taylor Essay

553 WordsNov 17, 20143 Pages
1. WHAT AMOUNT DID ANN TAYLOR REPORT AS I/T ON ITS TAX RETURNS FOR THE YEAR ENDING 29JAN2005? WHAT AMOUNT DID ANN TAYLOR REPORT ASI/T EXPENSE ON I/S FOR THE YEAR ENDING 29JAN2005? The amount included in i/t return is $43,078/-. Whereas the statutory rates for 106,354/- @ 35% is only 37,224/- Thus the difference between the Entity’s and the statutory rates are taken to I/S as tax expense which is 5,854/- 2. WHAT AMOUNT OF DEFERRED TAX ASSETS AND/OR DEFERRED TAX LIABILITIES DID ANN TAYLOR REPORT ON ITS BALANCE SHEET FOR THE YEAR ENDED JANUARY 29, 2005? The deferred tax asset for the year ended 29jan2009 is 15,926/- to the amount of 14,054/- which was on 31jan2004. Likewise the deferred liability is 3,640/- as on 29jan2005 to the amount of 6,797/- which was on 31jan2004. The deferred liability has considerably reduced. 3. DOES DEFERRED TAX EXPENSE ACCOUNT FOR THE CHANGE IN NET DEFERRED TAX ASSETS AND LIABILITIES FOR THE YEAR ENDING JANUARY 29, 2005? IF NOT, WHAT MIGHT EXPLAIN THE DIFFERENCE The values of current and non current assets have drastically increased and thus this has resulted in change in net deferred tax assets & (liabilities). With time passing, the the life of the current and non current assets also get decreased. This shall for obvious decrease the values of deferred tax asset and liability. 4. WHAT MIGHT EXPLAIN WHY DEPRECIATION RESULTED IN A DEFERRED TAX LIABILITY FOR ANN TAYLOR FOR THE YEAR ENDING JANUARY 29, 2005? WHAT MIGHT EXPLAIN WHY INVENTORY RESULT IN A DEFERRED TAX ASSET FOR THE YEAR ENDING JANUARY 29, 2005? Ann taylor might have purchased some new asset those that are depreciable. The taxes charged on basis of accounting principle and taxing norms will differ. This is because the entity depreciates the asset based on it’s useful life .this difference would continue year on year until the asses is

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