Use the Table for the Question(s)below

question 51

Multiple Choice

Use the table for the question(s) below.
Consider the following income statement for Kroger Inc.(all figures in $ Millions) :
-The interest rate tax shield for Kroger in 2005 is closest to:

• A)$362 million.
• B)$36 million.
• C)$102 million.
• D)$195 million.

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Definitions:

Annual Amortization

The procedure of methodically deducting the starting cost of an intangible asset throughout its period of utility.

Retained Earnings

The portion of net profits not distributed to shareholders but reinvested in the business or kept as reserve.

Net Income

The profit a company retains after deducting every expense, tax, and cost from its total income.

Equity Method

An accounting technique used for recording investments in associate companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net income or loss and dividend received.