Recording Income Tax Expense Nike, Inc., reports the following tax information i

Question

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:

The provision for income taxes is as follows:

Required

b. Record Nike's provision for income taxes for 2014 (in millions) using journal entries.

c. Explain how the provision for income taxes affects Nike’s financial statements.

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

Explanation / Answer

Ans b: deferred income taxes -11

Income tax expenses -862

Income tax payable-852

C. Net income decreased by 862 million

Liabilities increased by 852 million

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.