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Obtain the KraftHeinz 2014 Annual Report online (amounts in annual report and in

ID: 2475016 • Letter: O

Question

Obtain the KraftHeinz 2014 Annual Report online (amounts in annual report and in questions are in $M)

(this is the link:http://files.shareholder.com/downloads/ABEA-3QV6OO/1106417965x0x730413/145F2E19-6958-4EA2-9111-B31F2E8CEF47/filing_10K.pdf)

1.What is the total amount of deferred taxes (assets and/or liabilities)

           

                       

2.How much of the net deferred tax assets at fiscal year-end 2014 are due to pension benefit plans?

3.Explain why deferred taxes might result due to benefit plans.

4.Prepare the journal entry to record income tax expense for fiscal year 2014 (present any deferred tax asset and any deferred tax liability as a net amount in the journal entry)

Explanation / Answer

1) Deferred inocme tax amounts (assets) $2346

Deferred income tax amounts (liability ) $2223

2) Deferred tax for pensions $407

3) Contributions to defined plans are tax deferred meaning that neither the employer nor the employers pay tax on the initial contribution or accumulated earnings.

4) journal entry

DR income tax expense              $363

DR Deferred tax assets                   44

Cr To income tax payble                           $$407