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Im not sure about the correct answers for A and B, please let me and EXPLAIN the solution to the answer. Thanks! Question 2 Partially
Im not sure about the correct answers for A and B, please let me and EXPLAIN the solution to the answer. Thanks!
Question 2 Partially correct Mark 23.00 out of 30.00 Flag question Recording Income Tax Expense Nike, Inc., reports the following tax information in the notes to its 2018 financial report. Income before income taxes is as follows: Year Ended May 31 (In millions) 2018 2017 2016 Income before income taxes: United States $744 $1,240 $956 Foreign 3,581 3,646 3,667 $4,325 $4,886 $4,623 The provision for income taxes is as follows: Year Ended May 31 (in millions) 2018 2017 2016 Current: United States Federal State Foreign $1,167 $398 $304 45 82 71 533 439 568 1,745 919 943 Deferred: United States Federal State Foreign 595 (279) (57) 25 (9) (16) 27 15 (7) 647 (273) (80) $2,392 $646 $863 Nike also states the following: The effective tax rate for the year ended May 31, 2018 was higher than the effective tax rate for the year ended May 31, 2017 primarily due to the enactment of the Tax Act, which included provisional expense of $1,875 million for the one-time transition tax on the deemed repatriation of undistributed foreign earnings, and $158 million due to the remeasurement of deferred tax assets and liabilities Required a. Record Nike's provision for income taxes for 2018 using the financial statement effects template. Enter answers in millions in the appropriate account columns, using the second row only if additional space is needed. Use a negative sign with answers, when appropriate. Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset Asset Liabilities Capital Capital Revenues Expenses Net Income To record income tax expense $1,745 + (1,745) * (1,745) x = (1,745) x 0 0 x + 0 0 0 + + + 0 + 0 = 0 + 0 0 + 0 + 0 b. Record Nike's provision for income taxes for 2018 (in millions) using journal entries. General Journal Description Debit Credit Income tax expense 2,392 Income taxes payable 1,745 x 0 x Deferred income taxes 0 1,745 x 0 c. Explain how the provision for income taxes affects Nike's financial statements. Net income Decreased 2,392 million by $ by $ Liabilities Increased 2,392 million b. Record Nike's provision for income taxes for 2018 (in millions) using journal entries. Credit General Journal Description Debit Income tax expense 2,392 Income taxes payable 1,745 X Deferred income taxes 0 0 OX 1,745 xStep by Step Solution
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