Wilbur Mills, Inc., began operations in 1999. The firm recognized $12 million of depreciation expense on its income statement and reported $20 million as depreciation on its tax return for 1999. The 1999 income statement shows pre-tax income of $10 million with an income tax rate of 40%.

Required Determine the following amounts for 1999:

a. Income tax expense.

b. Income tax payable.

c. Difference between the book and tax bases of Wilbur Mills’assets at year-end.

d. Deferred tax liability at year-end.