Consider the following income tax footnote information for Oracle for the fiscal year ended May 31,...
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Consider the following income tax footnote information for Oracle for the fiscal year ended May 31, 2019 (fiscal year 2019). The following is a geographical breakdown of income before the provision for income taxes: Year Ended May 31 (in millions) Domestic 2019 2018 $3,774 $3,366 8,494 9,058 Foreign Income before provision for income taxes $12.268 $12,424 $11,680 The provision for income taxes consisted of the following: Year Ended May 31 (5 in millions) 2019 2018 2017 Current provision: Federal State Foreign Total current provision Deferred benefit Federal State Foreign Total deferred benefit Total provision for income taxes $979 $8,320 300 264 1,097 1.100 1,475 $2,376 $9,684 $2,668 $936 257 2017 $3,674 8,006 $483 1(827) $(158) (28) (26) (29) (253) 6 (1,646) (1.191) 5(847) $(440) $1,185 $8,837 $2,228 The provision for income taxes differed from the amount computed by applying the federal statutory rate to our income before provisi P... Type here to search Business Course Return to course The provision for income taxes differed from the amount computed by applying the federal statutory rate to our income before provision for income taxes as follows: Year Ended May 31 (5 in millions) 2019 2018 2017 21.0% 29.2% 35.0% $2,576 $3629 $4,088 US federal statutory tax rate Tax provision at statutory rate impact of the Tax Act of 2017: One-time transition tax Deferred tax effects Foreign eamings at other than United States rates State tax expense, net of federal benefit Settlements and releases from judicial decisions and statute expirations, net Domestic production activity deduction Tederal research and development credit Stock-based compensation Deferred tax assats Other, net Total provision for income taxes The components of our deferred tax assets and liabilities were as follows: May 31 On millions) (529) 7,781 140 (911) (789) (995) (1.312) 197 142 150 (132) (252) (189) (87) (119) (158) (174) (127) (2011 (302) (14) 81 6 (114) $1,185 16837 $2,228 O Accruals and allowanon Employee compensation and benefits Differences in taming of revenue recognition Bass of property, plant and equipment and intangble assets 1.238 Tax credit and net operating loss carryforwards 2019 2018 B $541 3567 646 644 322 338 3717 2,614 6464 4183 (1.266) (1.30 The components of our deferred tax assets and liabilities were as follows: Deferred tax assets: May 31 (in millions) Accruals and allowances Employee compensation and benefits Differences in timing of revenue recognition Basis of property, plant and equipment and intangible assets Tax credit and net operating loss carryforwards Total deferred tax assets Valuation allowance Total deferred tax assets, net Deferred tax liabilities: Unrealized gain on stock Acquired intangible assets GILTI deferred Basis of property, plant and equipment an intangible assets Other Total deferred tax liabilities Net deferred tax assets $ millions Total deferred tax asset Valuation allowance 2017 2016 $6,197 $4,936 1,164 1,173 2019 2018 $541 646 322 1,238 3,717 2,614 6,464 4,183 $567 664 338 (1,266) (1,308) 5,198 2,875 (1,515) (78) (78) (973) (1,254) (158) (200) (48) (2,766) (1,538) $2,432 $1,337 Required a. Use the four-year average valuation allowance to deferred tax assets (2016-2019 to adjust the income statement for each of the four years 2016-2019. Follow Analyst Adjustments 10.3 for guidance in the adjustment process. Note Use a negative sign to indicate an income statement reversal Note: Do not round until your final answer, round your final answers below to the nearest whole dollar. Income Statement Adjustments millions) income tax exper Netcome 2016 Balance Sheet Adjustments 2016 (3) Deferred fa Check 01 2017 2017 0.5 0 b. Adjust the balance sheet for each of the four years 2016-2019 Note: Use a negative sign to indicate a decrease of the balance sheet accounts. Note: Round your answers to the nearest whole dollar 0 2018 01 0 2018 2019 09 0 0 2019 ww the adjustment process. Note: Use a negative sign to indicate an income statement reversal. Note: Do not round until your final answer; round your final answers below to the nearest whole da Income Statement Adjustments ($ millions) Income tax expense Net income 2016 Balance Sheet Adjustments 2016 ($ millions) Valuation allowance Deferred tax assets, net Total assets Retained Earnings Check Tyne here to search 0 $ 0 0 $ 0 0 0 2017 2017 O b. Adjust the balance sheet for each of the four years 2016-2019. Note: Use a negative sign to indicate a decrease of the balance sheet accounts. Note: Round your answers to the nearest whole dollar. COO 0 $ 0 0$ 0 00 2018 2018 0 $ 0 0 0 $ 0 2019 2019 0 0 0 0 0 0 adjust the in Consider the following income tax footnote information for Oracle for the fiscal year ended May 31, 2019 (fiscal year 2019). The following is a geographical breakdown of income before the provision for income taxes: Year Ended May 31 (in millions) Domestic 2019 2018 $3,774 $3,366 8,494 9,058 Foreign Income before provision for income taxes $12.268 $12,424 $11,680 The provision for income taxes consisted of the following: Year Ended May 31 (5 in millions) 2019 2018 2017 Current provision: Federal State Foreign Total current provision Deferred benefit Federal State Foreign Total deferred benefit Total provision for income taxes $979 $8,320 300 264 1,097 1.100 1,475 $2,376 $9,684 $2,668 $936 257 2017 $3,674 8,006 $483 1(827) $(158) (28) (26) (29) (253) 6 (1,646) (1.191) 5(847) $(440) $1,185 $8,837 $2,228 The provision for income taxes differed from the amount computed by applying the federal statutory rate to our income before provisi P... Type here to search Business Course Return to course The provision for income taxes differed from the amount computed by applying the federal statutory rate to our income before provision for income taxes as follows: Year Ended May 31 (5 in millions) 2019 2018 2017 21.0% 29.2% 35.0% $2,576 $3629 $4,088 US federal statutory tax rate Tax provision at statutory rate impact of the Tax Act of 2017: One-time transition tax Deferred tax effects Foreign eamings at other than United States rates State tax expense, net of federal benefit Settlements and releases from judicial decisions and statute expirations, net Domestic production activity deduction Tederal research and development credit Stock-based compensation Deferred tax assats Other, net Total provision for income taxes The components of our deferred tax assets and liabilities were as follows: May 31 On millions) (529) 7,781 140 (911) (789) (995) (1.312) 197 142 150 (132) (252) (189) (87) (119) (158) (174) (127) (2011 (302) (14) 81 6 (114) $1,185 16837 $2,228 O Accruals and allowanon Employee compensation and benefits Differences in taming of revenue recognition Bass of property, plant and equipment and intangble assets 1.238 Tax credit and net operating loss carryforwards 2019 2018 B $541 3567 646 644 322 338 3717 2,614 6464 4183 (1.266) (1.30 The components of our deferred tax assets and liabilities were as follows: Deferred tax assets: May 31 (in millions) Accruals and allowances Employee compensation and benefits Differences in timing of revenue recognition Basis of property, plant and equipment and intangible assets Tax credit and net operating loss carryforwards Total deferred tax assets Valuation allowance Total deferred tax assets, net Deferred tax liabilities: Unrealized gain on stock Acquired intangible assets GILTI deferred Basis of property, plant and equipment an intangible assets Other Total deferred tax liabilities Net deferred tax assets $ millions Total deferred tax asset Valuation allowance 2017 2016 $6,197 $4,936 1,164 1,173 2019 2018 $541 646 322 1,238 3,717 2,614 6,464 4,183 $567 664 338 (1,266) (1,308) 5,198 2,875 (1,515) (78) (78) (973) (1,254) (158) (200) (48) (2,766) (1,538) $2,432 $1,337 Required a. Use the four-year average valuation allowance to deferred tax assets (2016-2019 to adjust the income statement for each of the four years 2016-2019. Follow Analyst Adjustments 10.3 for guidance in the adjustment process. Note Use a negative sign to indicate an income statement reversal Note: Do not round until your final answer, round your final answers below to the nearest whole dollar. Income Statement Adjustments millions) income tax exper Netcome 2016 Balance Sheet Adjustments 2016 (3) Deferred fa Check 01 2017 2017 0.5 0 b. Adjust the balance sheet for each of the four years 2016-2019 Note: Use a negative sign to indicate a decrease of the balance sheet accounts. Note: Round your answers to the nearest whole dollar 0 2018 01 0 2018 2019 09 0 0 2019 ww the adjustment process. Note: Use a negative sign to indicate an income statement reversal. Note: Do not round until your final answer; round your final answers below to the nearest whole da Income Statement Adjustments ($ millions) Income tax expense Net income 2016 Balance Sheet Adjustments 2016 ($ millions) Valuation allowance Deferred tax assets, net Total assets Retained Earnings Check Tyne here to search 0 $ 0 0 $ 0 0 0 2017 2017 O b. Adjust the balance sheet for each of the four years 2016-2019. Note: Use a negative sign to indicate a decrease of the balance sheet accounts. Note: Round your answers to the nearest whole dollar. COO 0 $ 0 0$ 0 00 2018 2018 0 $ 0 0 0 $ 0 2019 2019 0 0 0 0 0 0 adjust the in
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Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders , Marcia Cornett
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