Recording Income Tax Expense Nike, Inc., reports the following tax information in Note 9 to its...

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Recording Income Tax Expense Nike, Inc., reports the following tax information in Note 9 to its 2014 financial report. Income before income taxes is as follows: Year Ended May 31 (In millions) 2014 2013 2012 Income before income taxes: United States $3,066 $1,231 $799 Foreign 478 2,025 2,212 $3,544 $3,256 $3,011 The provision for income taxes is as follows: Year Ended May 31 (In millions) 2014 2013 2012 Current: United States Federal $371 $432 $286 State 93 69 51 Foreign 398 398 488 862 899 825 Deferred: United States Federal 8 0 (47) State (3) (4) Foreign (16) (90) (29) (11) (94) (71) $851 $805 $754 Required a. Record Nike's provision for income taxes for 2014 using the financial statement effects template. Enter answers in millions in the appropriate account columns, using the second row only if additional space is needed. Balance Sheet Transaction Cash Asset Noncash Assets = Liabilities Contrib + To record income tax expense $ + $ $862 + $ b. Record Nike's provision for income taxes for 2014 (in millions) using journal entries. General Journal Description Debit Credit Deferred income taxes Income tax expense Income taxes payable + c. Explain how the provision for income taxes affects Nike's financial statements. Decreased : v by $ 0 x million Net income Liabilities Increased by $ million d. Calculate and compare Nike's effective tax rate for 2014, 2013, and 2012. Round to one decimal place. 2012 2013 2014 Recording Income Tax Expense Nike, Inc., reports the following tax information in Note 9 to its 2014 financial report. Income before income taxes is as follows: Year Ended May 31 (In millions) 2014 2013 2012 Income before income taxes: United States $3,066 $1,231 $799 Foreign 478 2,025 2,212 $3,544 $3,256 $3,011 The provision for income taxes is as follows: Year Ended May 31 (In millions) 2014 2013 2012 Current: United States Federal $371 $432 $286 State 93 69 51 Foreign 398 398 488 862 899 825 Deferred: United States Federal 8 0 (47) State (3) (4) Foreign (16) (90) (29) (11) (94) (71) $851 $805 $754 Required a. Record Nike's provision for income taxes for 2014 using the financial statement effects template. Enter answers in millions in the appropriate account columns, using the second row only if additional space is needed. Balance Sheet Transaction Cash Asset Noncash Assets = Liabilities Contrib + To record income tax expense $ + $ $862 + $ b. Record Nike's provision for income taxes for 2014 (in millions) using journal entries. General Journal Description Debit Credit Deferred income taxes Income tax expense Income taxes payable + c. Explain how the provision for income taxes affects Nike's financial statements. Decreased : v by $ 0 x million Net income Liabilities Increased by $ million d. Calculate and compare Nike's effective tax rate for 2014, 2013, and 2012. Round to one decimal place. 2012 2013 2014

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