The income tax footnote to the financial statements of Apple Inc., for the year
ID: 2602828 • Letter: T
Question
The income tax footnote to the financial statements of Apple Inc., for the year ended December 31, 2016, includes the following information (in millions).
($ millions)
2016
Current tax provision
Federal
$7,652
State
990
Foreign
2,105
10,747
Deferred tax provision
Federal
5,043
State
(138)
)
Foreign
33
4,938
Provision for income taxes
$15,685
How much of the income tax expense is payable in 2016?
($ millions)
2016
Current tax provision
Federal
$7,652
State
990
Foreign
2,105
10,747
Deferred tax provision
Federal
5,043
State
(138)
)
Foreign
33
4,938
Provision for income taxes
$15,685
Explanation / Answer
income tax payable is the amount of current tax provision in the books which is 10747
deferred tax is created for GAAP purposes according to matching principle and is not something directly payable to government now. it will have tax implications but not a direct liability to government.
only the current tax provision is the direct liability to government.
and income tax expense payable in 2016= 10747
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