Reporting Deferred Income Taxes (Supplement B) The annual report for Starbucks contains the following information (in millions):
Income Taxes
The provision for income taxes consisted of the following (in millions):
|
2008 |
2007 |
2006 |
|
|
Current income taxes |
$255.10 |
$423.20 |
$402.40 |
|
Deferred Taxes |
111.1 |
39.5 |
77.6 |
|
Total |
$144.00 |
$383.70 |
$324.80 |
Required:
1. Determine whether tax expense is higher or lower than taxes payable for each year.
2. Is the deferred tax liability reported on the 2008 balance sheet $111.1 million? Explain.