Deere & Company reports the following tax information in its fiscal 2018 financial report. The provision for income taxes by taxing jurisdiction and by significant component consisted of the following in millions of dollars:

REQUIRED:

a. What amount of tax expense is reported in Deere's 2018 income statement? In 2017? In 2016? How much of each year's income tax expense is current tax expense and how much is deferred tax expense?

b. Compute Deere's effective tax rate for each year.

c. Assume that Deere's deferred tax in 2018 is due to deferred tax liabilities. Provide one possible example that would be consistent with this situation.

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2018 2017 2016 Current: U.S.: Federal $ (268) $360 48 $ 51 26 340 P.. ... ... State 123 .... Foreign. 392 463 Total current... 247 871 417