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USD Chapter 16 Accounting for Income Taxes & Debt To Equity Ratio Paper
Subject
Business Finance
Question Description
1. Identify the objectives of accounting for income taxes.
2. What is the rationale for the argument that long-term deferred tax liabilities should be excluded from liabilities when computing the debt-to-equity ratio?
3. What would be the effect on Macy's debt-to-equity ratio of excluding deferred tax liabilities from its calculation? What would be the percentage change?
4. What might be the rationale for not excluding long-term deferred tax liabilities from liabilities when computing the debt-to-equity ratio?
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