The income tax disclosure note accompanying the January 31, 2017, financial statements of Walmart is reproduced below:

		2017		2016		2015
Current:
U.S. federal		$3,454		$5,562		$6,165
U.S. state and local		495		622		810
International		1,510		1,400		1,529
Total current tax provision		5,459		7,584		8,504
Deferred:
U.S. federal		1,054		(704)		(387)
U.S. state and local		51		(106)		(55)
International		(360)		(216)		(77)
Total deferred tax expense (benefit)		745		(1,026)		(519)
Total provision for income taxes		$6,204		$6,558		$7,985
				2017		2016
Deferred tax assets:
Loss and tax credit carryforwards				$3,633		$3,313
Accrued liabilities				3,437		3,763
Share-based compensation				309		192
Other				1,474		1,390
Total deferred tax assets				8,853		8,658
Valuation allowances				(1,494)		(1,456)
Deferred tax assets, net of valuation allowance				$7,359		$7,202
Deferred tax liabilities:
Property and equipment				$6,435		$5,813
Inventories				1,808		1,790
Other				1,884		1,452
Total deferred tax liabilities				10,127		9,055
Net deferred tax liabilities				$2,768		$1,853

Required:

1. Focusing on only the first part of Note 9, relating current, deferred, and total provision for income taxes, prepare a summary journal entry that records Walmarts 2017 tax expense associated with income from continuing operations. Please make a single entry to Deferred tax liability (net) for the total effect on deferred tax assets, deferred tax liabilities and the valuation allowance.

2. Calculate the actual change in Walmarts net deferred tax liability for fiscal 2017. Does that change reconcile with the change indicated in your summary journal entry? What besides continuing operations might affect deferred taxes?

Res World Case 16-5 Disclosure issues balance sheet dessications: Walmart + LD1- 401 404 LLCH- The se do te p a sury 31, 2017. h e Walmart la reproduced below. 2017 2016 2015 53.5 195 1,510 3,439 55.582 622 1,400 7.584 58.185 810 529 9.504 Current U.S. Sederal U.S. a nd local Internal Total current tax provision Deferred: U.S. Sederal U.S. State and local Imismaal Total deferred tax expense benefit Total provision for Income taxes 1,054 51 (704) (106) 387) 55) 102) SA 558 2017 519) 57 585 2016 Deferred tax assets Loss and tax cred carryforward Accrundlalties Shan-based compensatan Other Tonal deferred tax. ASTAR Valton Deferred tax assess of valuation alkwance Deferred lax liabilities: Property and eurent Inventores 53,033 53,313 3.437 3.763 309192 1,474 1390 8.963 8658 11.401) 1.456 37.359 57 202 38,435 1,505 1.884 10,127 52.768 $5.813 1,790 1.452 9.055 51 543 Total deferred tax liabilities Net deferred tax liabilities ple entry to Deferred to Theility inel" for the totalect on deferred to as deferred to list and deviations 1 Furgon only refire part of t 2 Calaste the s chein t Sexy rebati det, der and total provision for im net deferred to lisbility for fiscal 2017 Does p reuna mary jamal try records 5 's 2017 tw i Concile th the che indicated in your emal entry What basic con nd with from certising operation please makes c ernight defend Res World Case 16-5 Disclosure issues balance sheet dessications: Walmart + LD1- 401 404 LLCH- The se do te p a sury 31, 2017. h e Walmart la reproduced below. 2017 2016 2015 53.5 195 1,510 3,439 55.582 622 1,400 7.584 58.185 810 529 9.504 Current U.S. Sederal U.S. a nd local Internal Total current tax provision Deferred: U.S. Sederal U.S. State and local Imismaal Total deferred tax expense benefit Total provision for Income taxes 1,054 51 (704) (106) 387) 55) 102) SA 558 2017 519) 57 585 2016 Deferred tax assets Loss and tax cred carryforward Accrundlalties Shan-based compensatan Other Tonal deferred tax. ASTAR Valton Deferred tax assess of valuation alkwance Deferred lax liabilities: Property and eurent Inventores 53,033 53,313 3.437 3.763 309192 1,474 1390 8.963 8658 11.401) 1.456 37.359 57 202 38,435 1,505 1.884 10,127 52.768 $5.813 1,790 1.452 9.055 51 543 Total deferred tax liabilities Net deferred tax liabilities ple entry to Deferred to Theility inel" for the totalect on deferred to as deferred to list and deviations 1 Furgon only refire part of t 2 Calaste the s chein t Sexy rebati det, der and total provision for im net deferred to lisbility for fiscal 2017 Does p reuna mary jamal try records 5 's 2017 tw i Concile th the che indicated in your emal entry What basic con nd with from certising operation please makes c ernight defend