Healy, Inc

question 65

Multiple Choice

Healy, Inc., reports an effective tax rate in its income tax footnote of 6%.The only reconciling item with regard to the hypothetical tax at 21% is a valuation allowance reversal of negative 15%.Which of the following statements is true concerning comparing Healy, Inc.'s effective tax rate with its competitors, all of whom have an effective tax rate between 20 and 24%?

• A)Healy Inc., is managing its tax burden in a more efficient manner than its competitors.
• B)Healy Inc., structural effective tax rate is actually quite close to its competitors.
• C)Healy Inc., earned more cash profits because of its lower effective tax rate.
• D)Healy Inc., is likely to be engaged in tax shelter activities.

---

Definitions:

Sexual Misconduct

Behavior that is sexually inappropriate, unethical, or legally forbidden, often involving abuse of power or breach of consent.

Intentional Tort

A deliberate action that causes harm or damage to another person.

Economic Interests

Financial stakes or benefits that influence the actions or decisions of individuals or entities.

Conversion

Permanent interference with another’s use and enjoyment of his or her personal property.