Real World Case 16-5 (Static) Disclosure issues; balance sheet classifications; Walmart [LO16-2, 16-3, 16-4, 16-8]

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. 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.

2. 2-a. Calculate the actual change in Walmarts net deferred tax liability for fiscal 2017.

3. 2-b. Does that change reconcile with the change indicated in your summary journal entry?