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: 2016 Year Ended May 31 (In millions) 2018 2017 Income before income taxes: United States $744 $1,240 Foreign 3,581 3,646 $4,325 $4,886 $956 3,667 $4,623 The provision for income taxes is as follows: Year Ended May 31 (In millions) 2018 2017 2016 Current: United States Federal $1,167 $398 $304 State 45 82 71 Foreign 533 439 568 1,745 919 943 Deferred: United States Federal 595 (279) (57) State 25 (9) (16) Foreign 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 0 0 = $1,745 0 + 0 x = 0 + 0 = O x + 0 + 0 0 - 0 = O* b. Record Nike's provision for income taxes for 2018 (in millions) using journal entries. General Journal Description Debit Credit Income tax expense 0x Income taxes payable 0 OX Deferred income taxes 0 0 x c. Explain how the provision for income taxes affects Nike's financial statements. Net income Decreased vby $ 0x million Liabilities increased by $ 0 x million d. Calculate and compare Nike's effective tax rate for 2018, 2017, and 2016. Round to one decimal place. 2018 0% x 2017 0 % X 2016 0 % X