Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Recording Income Tax Expense Nike, Inc., reports the following tax information in Note 9 to its 2014 financial report. Income before income taxes is

Recording Income Tax Expense Nike, Inc., reports the following tax information in Note 9 to its 2014 financial report Income before income taxes is as follows: 2014 2013 2012 Year Ended May 31 (In millions) Income before income taxes: United States Foreign $3,066 $1,231 $799 478 2,025 2,212 $3,544 $3,256 $3,011

Recording Income Tax Expense Nike, Inc., reports the following tax information in Note 9 to its 2014 financial report. Income before income taxes is as follows: Year Ended May 31 (In millions) 2014 2013 2012 Income before income taxes: United States $3,066 $1,231 $799 Foreign 478 2,025 2,212 $3,544 $3,256 $3,011 The provision for income taxes is as follows: Year Ended May 31 (In millions) 2014 2013 2012 Current: United States Federal $371 $432 $286 State 93 69 51 Foreign 398 398 488 862 899 825 Deferred: United States Federal 8 0 (47) State (3) (4) Foreign (16) (90) (29) (11) (94) (71) $851 $805 $754 Required a. Record Nike's provision for income taxes for 2014 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. Balance Sheet Transaction Cash Asset Noncash Assets = Liabilities Contrib + To record income tax expense $ + $ $862 + $ b. Record Nike's provision for income taxes for 2014 (in millions) using journal entries. General Journal Description Debit Credit Deferred income taxes Income tax expense Income taxes payable + c. Explain how the provision for income taxes affects Nike's financial statements. Decreased : v by $ 0 x million Net income Liabilities Increased by $ million d. Calculate and compare Nike's effective tax rate for 2014, 2013, and 2012. Round to one decimal place. 2012 2013 2014

Step by Step Solution

3.41 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

Please ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

15th edition

978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290

More Books

Students also viewed these Accounting questions