23. The Bellcamp Soup Company uses the straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The company?s tax rate is 35%. The following information is extracted from the company?s financial statements (amounts in $ millions).;Year 10 Year 11;Depreciation Expense 175.9 184.1;Net Income 4.4 401.5;Net Plant, Property and Equipment 1,717.7 1,790.4;Total Assets 4,115.6 4,149.0;Retained Earnings 1,653.3 1,912.6;Deferred Tax Liability--Plant (from Notes) 184.6 175.6;As an analyst, you have decided to adjust the company?s financial statements to reflect the conversion from straight-line to accelerated depreciation. Use the information provided to calculate the adjusted values for Year 11 of the following;a. Net Plant, Property and Equipment.;b. Retained Earnings.;c. Net Income.
Paper#20324 | Written in 18-Jul-2015Price : $22