Kroger Co. is one of the largest retail food companies in the United States as...
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Accounting
Kroger Co. is one of the largest retail food companies in the United States as measured by total annual sales. The Kroger Co. operates supermarkets, convenience stores, and manufactures and processes food that its supermarkets sell.
Using EDGAR (sec.gov) or the companys website (Kroger.com), check the companys annual report for the year ended January 28th, 2017.
Required:
1. From the income statement, determine the income tax expense for the most recent year. Tie that number to the first table in disclosure Note 5: Taxes Based on Income and prepare a summary journal entry that records Krogers tax expense from continuing operations in the most recent year.
2. In 2016 companies could classify their deferred tax assets and liabilities as current or noncurrent. From Krogers note 5, calculate the total (current + noncurrent) net deferred tax asset or liability as of January 28th 2017, and January 30th 2016. By how much did that amount change? To what extent did you account for that change in the journal entry you wrote for the first requirement of this case? Speculate as to the explanation of any difference.
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