Pls use above information to answer :

a. What is the total amount of income tax expense that Oracle reports in its fiscal 2019 income statement? What portion of this expense did Oracle pay during 2019 or expect to pay in 2020?

b. Explain how the deferred tax liability called "Acquired intangible assets" arises. Under what circumstances will the company settle this liability? Under what circumstances might this liability be deferred indefinitely?

c. Explain how the deferred tax asset called "Employee compensation and benefits" arises. Why is it recognized as an asset?

d. Explain how the deferred tax asset called "Tax credit and net operating loss carryforwards" arises. Under what circumstances will Oracle realize the benefits of this asset?

e. Oracle reports a 20 19 valuation allowance of $ 1,266 million. How does this valuation allowance arise? How did the change in valuation allowance for 2019 affect net income? Valuation allowances typically relate to questions about the realizability of tax loss carryforwards. Under what circumstances might Oracle not realize the benefits of its tax loss carryforwards?

f Calculate Oracle's effective (average) tax rate for each year.

g. Oracle reconciles the difference between its total provision for income tax and the statutory rate. What item explains most of the difference in fiscal 2017 compared to fiscal 2018?

h. If not for the effects of the Tax Cuts and Jobs Act of 2017, what would have been Oracle's effective tax rate each year?

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The following is a geographical breakdown of income before the provision for income taxes: Year Ended May 31 (in millions) Domestic. Foreign. Income before provision for income taxes The provision for income taxes consisted of the following: Year Ended May 31 ($ in millions) Current provision: Federal. State. Foreign. Total current provision Deferred benefit: Federal. State. Foreign... Total deferred benefit. Total provision for income taxes. 2019 $ 3,774 8,494 $12,268 Year Ended May 31 ($ in millions) U.S. federal statutory tax rate.. Tax provision at statutory rate Impact of the Tax Act of 2017: One-time transition tax. Deferred tax effects Foreign earnings at other than United States rates State tax expense, net of federal benefit. Settlements and releases from judicial decisions and statute expirations, net... Domestic production activity deduction Federal research and development credit Stock-based compensation Other, net. Total provision for income taxes 2019 $979 300 1,097 $2,376 $ 483 2019 21.0% $2,576 (28) (1,646) $ (847) $(1,191) $1,185 $8,837 (529) 140 2018 $ 3,366 9,058 $12,424 (789) 197 2018 (132) $8,320 264 1,100 $9,684 $ (827) (26) 6 The provision for income taxes differed from the amount computed by applying the federal statutory rate to our income before provision for income taxes as follows: 2018 29.2% $3,629 7,781 (911) (995) 142 (252) (87) (174) (302) 6 2017 $3,674 8,006 $11,680 (158) (201) 81 $1,185 $8,837 2017 $936 257 1,475 $2,668 $ (158) (29) (253) $ (440) $2,228 2017 35.0% $4,088 (1,312) 150 (189) (119) (127) (149) (114) $2,228 continued The following is a geographical breakdown of income before the provision for income taxes: Year Ended May 31 (in millions) Domestic. Foreign. Income before provision for income taxes The provision for income taxes consisted of the following: Year Ended May 31 ($ in millions) Current provision: Federal. State. Foreign. Total current provision Deferred benefit: Federal. State. Foreign... Total deferred benefit. Total provision for income taxes. 2019 $ 3,774 8,494 $12,268 Year Ended May 31 ($ in millions) U.S. federal statutory tax rate.. Tax provision at statutory rate Impact of the Tax Act of 2017: One-time transition tax. Deferred tax effects Foreign earnings at other than United States rates State tax expense, net of federal benefit. Settlements and releases from judicial decisions and statute expirations, net... Domestic production activity deduction Federal research and development credit Stock-based compensation Other, net. Total provision for income taxes 2019 $979 300 1,097 $2,376 $ 483 2019 21.0% $2,576 (28) (1,646) $ (847) $(1,191) $1,185 $8,837 (529) 140 2018 $ 3,366 9,058 $12,424 (789) 197 2018 (132) $8,320 264 1,100 $9,684 $ (827) (26) 6 The provision for income taxes differed from the amount computed by applying the federal statutory rate to our income before provision for income taxes as follows: 2018 29.2% $3,629 7,781 (911) (995) 142 (252) (87) (174) (302) 6 2017 $3,674 8,006 $11,680 (158) (201) 81 $1,185 $8,837 2017 $936 257 1,475 $2,668 $ (158) (29) (253) $ (440) $2,228 2017 35.0% $4,088 (1,312) 150 (189) (119) (127) (149) (114) $2,228 continued

Answer rating: 100% (QA)

a Oracle reports total income tax expense of 5247 million in its fiscal 2019 income statement Of this expense 4581 million was paid during 2019 and th... View the full answer