How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask atluriram Your Own Question

atluriram
atluriram, Research Analyst
Category: General
Satisfied Customers: 533
Experience:  MASTER OF COMMERCE, BACHELOR OF LAWS, P.G. DIPLOMA IN PERSONNEL MANAGEMENT AND INDUSTRAL COUNSELING
22289965
Type Your Question Here...
atluriram is online now
A new question is answered every 9 seconds

A member of the board of directors of your company is concerned

Resolved Question:

A member of the board of directors of your company is concerned that the company's income statement reports income tax expense of $12.3 million, but the income tax obligation to the government for the year is only $7.9 million. How might you (as the corporate controller) explain this apparent discrepancy? (Keep in mind that this board member has a limited accounting background).
Submitted: 3 years ago.
Category: General
Expert:  atluriram replied 3 years ago.
Sir/madam

I herewith submit the answer

with regards
atluri ramesh

------------------------

NOTE TO THE SHAREHOLDERS
Out of three financial statements, the income statement is one of the financial statements. The income statement provides revenues and expenses for the specified period either quarterly or annually for the fiscal year. The expenses include operating expenses, interest expenses and income taxes. In fact the income tax is shown as obligation to pay but it is not actually paid amount by the company. In other words it is kept as reserve to pay the income tax after consolidations of all amounts and expenditures over a time. Hence definitely there will be variation from income tax expenses and actual payment of income tax.
Accordingly, the company created $12.3 million as income tax expenses. But actual obligation is $7.9 million. The differential amount i.e. $4.4 million can be utilized as retained earnings or the board of Directors can recommend for declaration of dividend. In case if $12.3 million not kept as income tax expenses, the company supposed to face in paying the income tax that will cause interference of IRS authorities. As a precautionary measure and in anticipation of huge profits, such excess of income tax expenses are created. Hence the creation of higher income tax expenses is justifiable.
atluriram, Research Analyst
Category: General
Satisfied Customers: 533
Experience: MASTER OF COMMERCE, BACHELOR OF LAWS, P.G. DIPLOMA IN PERSONNEL MANAGEMENT AND INDUSTRAL COUNSELING
atluriram and 118 other General Specialists are ready to help you
Expert:  atluriram replied 3 years ago.
Sir/madam

You can also use the mediafire link

with regards
atluri ramesh
--------------

http://www.mediafire.com/?qh8u9d775fenoc0
-----------


JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Ron

    ASE Certified Technician

    Satisfied Customers:

    21786
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
< Last | Next >
  • http://ww2.justanswer.com/uploads/FO/fordguy4u/2011-12-17_222940_HPIM1257.64x64.JPG Ron's Avatar

    Ron

    ASE Certified Technician

    Satisfied Customers:

    21786
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
  • http://ww2.justanswer.com/uploads/lyeung1/2010-07-25_032152_tn_IMG_0241.JPG Dr. Y.'s Avatar

    Dr. Y.

    Urologist

    Satisfied Customers:

    18791
    I am fellowship trained specializing in general urology and reconstructive urology.
  • http://ww2.justanswer.com/uploads/docjohn174/2008-12-13_170143_johnask.jpg John's Avatar

    John

    Home Appliance Technician

    Satisfied Customers:

    13453
    Appliance repair business owner for over 43 years.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8681
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/dermdoc19/2010-09-30_160749_Photo_122807_015.JPG dermdoc19's Avatar

    dermdoc19

    Dermatologist

    Satisfied Customers:

    3954
    30 years practice in general and cosmetic dermatology
  • http://ww2.justanswer.com/uploads/BI/birddoctor/2012-6-22_173214_birddoctor.64x64.png Dr. Pat's Avatar

    Dr. Pat

    Bird Veterinarian

    Satisfied Customers:

    3464
    25+ years working primarily or exclusively with birds
  • http://ww2.justanswer.com/uploads/RY/rydergar/2012-6-6_192240_IMG0328.64x64.JPG Dr. Gary's Avatar

    Dr. Gary

    Cat Veterinarian

    Satisfied Customers:

    3424
    DVM, Emergency Veterinarian, BS (Physiology)
 
 
 

Related General Questions

Chat Now With An Expert
atluriram
atluriram
ADVOCATE
37 Satisfied Customers
MASTER OF COMMERCE, BACHELOR OF LAWS, P.G. DIPLOMA IN PERSONNEL MANAGEMENT AND INDUSTRAL COUNSELING