Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the companys website (www.target.com). Required: 1. From the income statement, determine the income tax expense for the year ended February 3, 2018. Tie that number to the second table in disclosure Note 23, Provision for Income Taxes, and prepare a summary journal entry that records Targets tax expense from continuing operations for the year ended February 3, 2018.

Includes the current portion of 568 million. 23. Income Taxes In December 2017, the U.S. government enacted the Tax Cuts and Jobs Act tax reform legislation (the Tax Act), which among other matters reduced the U.S. corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The Tax Act implements a territorial tax system and imposes a one-time repatriation tax on deemed repatriated accumulated foreign earnings as of December 31, 2017. The one-time repatriation tax was not material because our foreign entities have an accumulated earnings deficit, driven by our discontinued operations. We recognized the income tax effects of the Tax Act in our 2017 financial statements in accordance with Staff Accounting Bulletin No. 118 (SAB 118), which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the Tax Act was signed into law. As such, our financial results reflect the income tax effects of the Tax Act for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the Tax Act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. We have not identified any items for which the income tax effects of the Tax Act could not be reasonably estimated. We have recorded a provisional $352 million net tax benefit primarily related to the remeasurement of certain deferred tax assets and liabilities, including $381 million of benefit from the new lower rate, partially offset by $29 million of deferred income tax expense from our foreign operations. Additional work is necessary for a more detailed analysis of (1) certain deferred tax assets and liabilities, including 2017 accelerated depreciation deductions and (2) historical foreign earnings and outside book/tax basis differences. We do not expect subsequent adjustments to be material, but any such adjustments related to these amounts will be recorded to tax expense in the quarter of 2018 in which we complete the analysis. Earnings from continuing operations before income taxes were $3,646 million, $3,965 million, and $4,923 million during 2017, 2016, and 2015, respectively, including $722 million, $336 million, and $373 million earned by our foreign entities subject to tax outside of the U.S. 2016 35.0% 2.7 (2.6) 2015 35.0% 3.0 (2.3) Tax Rate Reconciliation - Continuing Operations Federal statutory rate State income taxes, net of the federal tax benefit International Tax Act (b) Excess tax benefit related to share-based payments Change in valuation allowance Other Effective tax rate 2017 33.7% 2.2 (4.6) (9.6) (0.1) (1.9) 19.7% (0.6) (2.3) (0.9) (1.8) 32.7% 32.5% Consolidated Statements of Operations 718 (millions, except per share data) 2017 2016 2015 Sales 71,879 $ 69,495 $ 73,785 Cost of sales la 51,125 49,145 52,241 Gross margin 20,754 20,350 21,544 Selling, general and administrative expenses 14,248 13,356 14,665 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,194 2,025 1,969 Gain on sale (620) Earnings from continuing operations before interest expense and income taxes 4,312 4,969 5,530 Net interest expense 666 1,004 607 Earnings from continuing operations before income taxes 3,646 3,965 4,923 Provision for income taxes 1.296 1,602 Net earnings from continuing operations 2.928 2.669 3,321 Discontinued operations, net of tax 68 42 Net earnings $ 2,934 $ 2.737 S 3.363 Basic earnings per share Continuing operations $ 5.35 $ 4.62 $ 5.29 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.36 $ 4.74 $ 5.35 Diluted earnings per share Continuing operations $ 5.32 $ 4.58 $ 5.25 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.33 $ 4.70 $ 5.31 Weighted average common shares outstanding Basic 546.8 577.6 627.7 Dilutive effect of share-based awards 3.5 4.9 5.2 Diluted 550. 3 5 82.5 632.9 Antidilutive shares 4.1 0.1 Dividends declared per share $ 2.46 $ 2.36 $ 2.20 Note: Per share amounts may not foot due to rounding Refer to Note 3 for additional information about a reclassification of supply chain-related depreciation expense to Cost of Sales. See accompanying Notes to Consolidated Financial Statements