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: 2019 2018 Year Ended May 31 (in millions) 2017 Domestic $3.774 53.366 $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 (Sin millions 2019 2018 2017 Current provision: Federal $979 58.320 5936 State 300 264 257 Foreign 1,097 1,100 1,475 Total current provision $2,376 59,684 52.668 Deferred benefit: Federal $483 5(827) S(158) State (28) (26) Foreign (1.646) 6 (253) Total deferred benefit S(1.191) 5(847) 5(440) Total provision for income taxes $1,185 58.837 52.228 (29) 140 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 (s in millions) 2019 2018 2017 U.S federal statutory tax rate 21.09 29.296 35.096 Tax provision at statutory rate $2.576 53,629 54,088 Impact of the Tax Act of 2017: One-time transition tax (529) 7.781 Deferred tax effects (911) Foreign earnings at other than United States rates (789) (995) (1.312) State tax expense, net of federal benefit 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 (114) Total provision for income taxes $1,185 $8,837 52.228 197 142 81 6 $541 646 322 1,238 2,614 The components of our deferred tax assets and liabilities were as follows: May 31 (in millions) 2019 2018 Deferred tax assets: Accruals and allowances $567 Employee compensation and benefits 664 Differences in timing of revenue recognition 338 Basis of property, plant and equipment and intangible assets Tax credit and net operating loss carryforwards 3,717 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 (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 oxs 0 x Oxs 0x5 OX Ox OX 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. Balance Sheet Adjustments 2016 2017 2019 (5 millions) Valuation allowance O x 5 Ox $ Ox $ Deferred tax assets, net ox Total assets Retained Earnings 2018 $ 0 0 x 0 0 x 0 x 0 OX OX 0 X OX 0 Check 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: 2019 2018 Year Ended May 31 (in millions) 2017 Domestic $3.774 53.366 $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 (Sin millions 2019 2018 2017 Current provision: Federal $979 58.320 5936 State 300 264 257 Foreign 1,097 1,100 1,475 Total current provision $2,376 59,684 52.668 Deferred benefit: Federal $483 5(827) S(158) State (28) (26) Foreign (1.646) 6 (253) Total deferred benefit S(1.191) 5(847) 5(440) Total provision for income taxes $1,185 58.837 52.228 (29) 140 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 (s in millions) 2019 2018 2017 U.S federal statutory tax rate 21.09 29.296 35.096 Tax provision at statutory rate $2.576 53,629 54,088 Impact of the Tax Act of 2017: One-time transition tax (529) 7.781 Deferred tax effects (911) Foreign earnings at other than United States rates (789) (995) (1.312) State tax expense, net of federal benefit 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 (114) Total provision for income taxes $1,185 $8,837 52.228 197 142 81 6 $541 646 322 1,238 2,614 The components of our deferred tax assets and liabilities were as follows: May 31 (in millions) 2019 2018 Deferred tax assets: Accruals and allowances $567 Employee compensation and benefits 664 Differences in timing of revenue recognition 338 Basis of property, plant and equipment and intangible assets Tax credit and net operating loss carryforwards 3,717 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 (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 oxs 0 x Oxs 0x5 OX Ox OX 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. Balance Sheet Adjustments 2016 2017 2019 (5 millions) Valuation allowance O x 5 Ox $ Ox $ Deferred tax assets, net ox Total assets Retained Earnings 2018 $ 0 0 x 0 0 x 0 x 0 OX OX 0 X OX 0 Check