Adjustments for Deferred Tax Asset Valuation Allowance 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)	2019	2018	2017
Domestic	$3,774	$3,366	$3,674
Foreign	8,494	9,058	8,006
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 ($ in millions)	2019	2018	2017
Current provision:
Federal	$979	$8,320	$936
State	300	264	257
Foreign	1,097	1,100	1,475
Total current provision	$2,376	$9,684	$2,668
Deferred benefit:
Federal	$483	$(827)	$(158)
State	(28)	(26)	(29)
Foreign	(1,646)	6	(253)
Total deferred benefit	$(1,191)	$(847)	$(440)
Total provision for income taxes	$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 provision for income taxes as follows:

Year Ended May 31 ($ in millions)	2019	2018	2017
U.S federal statutory tax rate	21.0%	29.2%	35.0%
Tax provision at statutory rate	$2,576	$3,629	$4,088
Impact of the Tax Act of 2017:
One-time transition tax	(529)	7,781	-
Deferred tax effects	140	(911)	-
Foreign earnings at other than United States rates	(789)	(995)	(1,312)
State tax expense, net of federal benefit	197	142	150
Settlements and releases from judicial decisions and
statute expirations, net	(132)	(252)	(189)
Domestic production activity deduction	-	(87)	(119)
Federal research and development credit	(158)	(174)	(127)
Stock-based compensation	(201)	(302)	(149)
Other, net	81	6	(114)
Total provision for income taxes	$1,185	$8,837	$2,228

The components of our deferred tax assets and liabilities were as follows:

May 31 (in millions)	2019	2018
Deferred tax assets:
Accruals and allowances	$541	$567
Employee compensation and benefits	646	664
Differences in timing of revenue recognition	322	338
Basis of property, plant and equipment and intangible assets	1,238
Tax credit and net operating loss carryforwards	3,717	2,614
Total deferred tax assets	6,464	4,183
Valuation allowance	(1,266)	(1,308)
Total deferred tax assets, net	5,198	2,875
Deferred tax liabilities:
Unrealized gain on stock	(78)	(78)
Acquired intangible assets	(973)	(1,254)
GILTI deferred	(1,515)
Basis of property, plant and equipment an intangible assets		(158)
Other	(200)	(48)
Total deferred tax liabilities	(2,766)	(1,538)
Net deferred tax assets	$2,432	$1,337

$ millions	2016	2017
Total deferred tax asset	$6,197	$4,936
Valuation allowance	1,164	1,173

Required a. Use the four-year average valuation allowance to deferred tax assets (20162019) of 22.55% to adjust the income statement for each of the four years 20162019. 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	2016	2017	2018	2019
($ millions)
Income tax expense	Answer	Answer	Answer	Answer
Net income	Answer	Answer	Answer	Answer

b. Adjust the balance sheet for each of the four years 20162019. Note: Use a negative sign to indicate a decrease of the balance sheet accounts. Note: Round your answers to the nearest whole dollar.

Balance Sheet Adjustments	2016	2017	2018	2019
($ millions)
Valuation allowance	Answer	Answer	Answer	Answer
Deferred tax assets, net	Answer	Answer	Answer	Answer
Total assets	Answer	Answer	Answer	Answer
Retained Earnings	Answer	Answer	Answer	Answer

Answer A & B.

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