Cishek Corporation sold $100 million of gift cards in 20X1. The gift cards may be used to purchase goods from Cishek in the future. The gift cards never expire, and Cishek expects that none of the gift cards will go unused. Cishek projects the gift cards will be used to purchase goods according to the following schedule:

($ in millions)
20X1 ............................ $30
20X2 ............................ 40
20X3 ............................ 16
20X4 ............................ 10
20X5 ............................ 4

Under GAAP, revenue is recognized as the gift cards are redeemed to purchase goods. For tax purposes, gift card issuers may delay reporting taxable income until the gift cards are redeemed, but no longer than two years. In other words, after two years, any unredeemed gift cards are considered taxable income, but then there is no additional taxable income upon redemption. The federal tax rate is 21%. Cishek is not subject to state taxes.

Required:

For each year 20X1 through 20X5, determine the amount of deferred tax asset Cishek would report in its December 31 balance sheet related to the gift cards. In answering this question, consider only the gift cards issued in 20X1, not any additional gift cards that might be issued in a subsequent year or that were issued in a previous year. Also, assume that Cishek’s expectations for the timing of future redemptions are met.