Question

In fiscal 2016, Snap-On Inc. reported a statutory tax rate of 35%, an effective tax rate of 30.5%. Income before income tax for 2016 was $801.4 million. What did Snap-On report as tax expense (on its income statement) in 2016? A. $166.7 million B. $170.0 million C. $244.4 million D. $184.7 million E. None of the above

Answer 1

Answer:

Snap on the report as the tax expenses will be $244.427

Explanation:

We have given income before tax in 2016 = $801.4 million

Effective rate tax = 30.5 % = 0.305

We have to find the snap on report as tax expense

Tax expenses is given by

Tax expense $=income\ before\ tax\times effective\ tax\ rate=801.4\times 0.305= 244.427$

So snap on the report as the tax expenses will be $244.427