Nike, Inc., reports the following tax information in the notes to its

Nike, Inc., reports the following tax information in the notes to its 2018 financial report. Income before income taxes is as follows:

The provision for income taxes is as follows:

Nike also states the following:

The effective tax rate for the year ended May 31, 2018 was higher than the effective tax rate for the year ended May 31, 2017 primarily due to the enactment of the Tax Act, which included provisional expense of $1,875 million for the one-time transition tax on the deemed repatriation of undistributed foreign earnings, and $158 million due to the re-measurement of deferred tax assets and liabilities.

a. Record Nike’s provision for income taxes for 2018 using the financial statement effects template.

b. Record Nike’s provision for income taxes for 2018 using journal entries.

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

d. Calculate and compare Nike’s effective tax rate for 2018, 2017, and 2016.

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