$100\%$ depreciation in the year of purchase; financial statement effects $[$LO$16-2]$

Ayres Services acquired an asset for $$80$ million in $2024.$ The asset is depreciated for financial reporting purposes over four years on

a straight$-$line basis $($no residual value$).$ Ayers deducted $100\%$ of the asset's cost for income tax reporting in $2024.$ The enacted tax rate

is $25\%.$ Amounts for pretax accounting income, depreciation, and taxable income in $2024,2025,2026,$ and $2027$ are as follows:

Required:

For December $31$ of each year, determine $($a$)$ the cumulative temporary book$-$tax difference for the depreciable asset and $($b$)$ the

balance to be reported in the deferred tax liability account.

Note: Leave no cell blank, enter $"0"$ wherever applicable. Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$Ayres Services acquired an asset for $$80$ million in $2024.$ The asset is depreciated for financial reporting purposes over four years on a straight$-$line basis $($no residual value$).$ Ayers deducted $100\%$ of the asset's cost for income tax reporting in $2024.$ The enacted tax rate is $25\%.$ Amounts for pretax accounting income, depreciation, and taxable income in $2024,2025,2026,$ and $2027$ are as follows:

$($$ in millions$)$

$2024202520262027$

Pretax accounting income $ $370$ $ $390$ $ $405$ $ $440$

Depreciation on the income statement $20202020$

Depreciation on the tax return $(80)(0)(0)(0)$

Taxable income $ $310$ $ $410$ $ $425$ $ $460$

Required:

For December $31$ of each year, determine $($a$)$ the cumulative temporary book$-$tax difference for the depreciable asset and $($b$)$ the balance to be reported in the deferred tax liability account.

Note: Leave no cell blank, enter $"0"$ wherever applicable. Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$