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 Domesta $5.284 54.712 55,146 Foreign 11.892 12,681 11.205 Income before provision for income taxes 517,176 $12,293 515,352 The provision for income taxes consisted of the following Year Ended May 315 in millions 2019 2018 2017 Current provision Federal 51,371 $11.64 $1,310 State 420 370 360 Foreign 1.536 1.540 2,065 Total current provision 53,327 513.558 53.735 Deferred bent Federal 676 31,158) 22 State 139) 36 (41) Foreign 2.300 054 Total deferred trent 1.67 186 616) Total provision for income $1,666 $12.72 1.119 The provision for income taxes differed from the amount computed by applying the federal statutory rate income before provision for income taxes as follows Year Ended May 31 is in millions) 2015 2017 2018 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 million) 2013 2018 2017 US federal statutory tax rate 29.2 35.0% Tax provision at statutory rate $3,606 $5,081 $5,723 Impact of the Tax Act of 2017 One-time transition (741) 10,893 Deferred tax effects 196 01.2750 Foreignamin at other than United States rates 11,105) 11.393) (1837) State fax expensent of federal benefit 276 199 210 Settlements and releases from judicial decisions and statute pron, net (185) 13:31 (265) Domestic production activity deduction (122) (167 Federal research and development credit 0221) (244) 43780 Stoc based compensation (281) 2 2001) Othernet 113 (1603 Total provision for income taxes $1.658 12.71 $3,117 The components of our deferred tax assets and liabilities were as follows: May 31 (in millions 2015 2014 Deferred tax asses Accruals and lowances 52574 Employee compensation and benefits 04 930 Diferenting of recognition 391 Basis of property, plant and equipment and innoblesse 33 Tax credit and nef operatio camrywa 5204 Total deferred tax 3.0 137 The components of our deferred tax assets and liabilities were as follows: May 11 in millions 2019 2018 Deferred tax assets Acerals and allowances 3757 $794 Employee compensation and benefits 904 930 Differences in timing of revenue recognition 451 473 Basis of property, plant and equipment and leanble assets 1,730 Tax credit and net operating loss Garryforwards 5.204 3,060 Total deferred tax assets 9.049 5.857 Valuation allowance (1.7723 01.031) Total deferred taxat 7.277 4,026 Deferred tax liabilities Unrealized gain on stock (10910109 Acquired intangible assets (1,362301.7561 GILT deferred (2.121 Bases of property and mentan tablet 2211 Other 200 007 Total deferred to 2.32212.15.30 Netdeferred tax assets 11.08 127 5 millions 2016 2017 Total deferred tax asset 18 676 50 510 Vanalinio 1.630 1642 Required Required a. Use the four year average valuation allowance to deferred tax assets (2016-2019) of 22.55% 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 2016 2017 2018 2019 Income Statement Adjustments (5 millions) Income tax expense Net income 11.45 XS Ox5 OM OMS ON 0 b. Adjust the balance sheet for each of the four years 2016-2019 2013 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 2011 (5 millions) Valuation allowance Os x 5 OX Deferred to assent OX 0X OX 0 Totale OX OX OX Retained Earning OX OK Check 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 Domesta $5.284 54.712 55,146 Foreign 11.892 12,681 11.205 Income before provision for income taxes 517,176 $12,293 515,352 The provision for income taxes consisted of the following Year Ended May 315 in millions 2019 2018 2017 Current provision Federal 51,371 $11.64 $1,310 State 420 370 360 Foreign 1.536 1.540 2,065 Total current provision 53,327 513.558 53.735 Deferred bent Federal 676 31,158) 22 State 139) 36 (41) Foreign 2.300 054 Total deferred trent 1.67 186 616) Total provision for income $1,666 $12.72 1.119 The provision for income taxes differed from the amount computed by applying the federal statutory rate income before provision for income taxes as follows Year Ended May 31 is in millions) 2015 2017 2018 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 million) 2013 2018 2017 US federal statutory tax rate 29.2 35.0% Tax provision at statutory rate $3,606 $5,081 $5,723 Impact of the Tax Act of 2017 One-time transition (741) 10,893 Deferred tax effects 196 01.2750 Foreignamin at other than United States rates 11,105) 11.393) (1837) State fax expensent of federal benefit 276 199 210 Settlements and releases from judicial decisions and statute pron, net (185) 13:31 (265) Domestic production activity deduction (122) (167 Federal research and development credit 0221) (244) 43780 Stoc based compensation (281) 2 2001) Othernet 113 (1603 Total provision for income taxes $1.658 12.71 $3,117 The components of our deferred tax assets and liabilities were as follows: May 31 (in millions 2015 2014 Deferred tax asses Accruals and lowances 52574 Employee compensation and benefits 04 930 Diferenting of recognition 391 Basis of property, plant and equipment and innoblesse 33 Tax credit and nef operatio camrywa 5204 Total deferred tax 3.0 137 The components of our deferred tax assets and liabilities were as follows: May 11 in millions 2019 2018 Deferred tax assets Acerals and allowances 3757 $794 Employee compensation and benefits 904 930 Differences in timing of revenue recognition 451 473 Basis of property, plant and equipment and leanble assets 1,730 Tax credit and net operating loss Garryforwards 5.204 3,060 Total deferred tax assets 9.049 5.857 Valuation allowance (1.7723 01.031) Total deferred taxat 7.277 4,026 Deferred tax liabilities Unrealized gain on stock (10910109 Acquired intangible assets (1,362301.7561 GILT deferred (2.121 Bases of property and mentan tablet 2211 Other 200 007 Total deferred to 2.32212.15.30 Netdeferred tax assets 11.08 127 5 millions 2016 2017 Total deferred tax asset 18 676 50 510 Vanalinio 1.630 1642 Required Required a. Use the four year average valuation allowance to deferred tax assets (2016-2019) of 22.55% 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 2016 2017 2018 2019 Income Statement Adjustments (5 millions) Income tax expense Net income 11.45 XS Ox5 OM OMS ON 0 b. Adjust the balance sheet for each of the four years 2016-2019 2013 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 2011 (5 millions) Valuation allowance Os x 5 OX Deferred to assent OX 0X OX 0 Totale OX OX OX Retained Earning OX OK Check