3. During 2018, its first year of operations, American Laminating Corporation reported an operating loss of $100 million for financial reporting and tax purposes. The enacted tax rate is 21%. In 2019, American reported a pretax accounting income of $40 million and applies a net operating loss carryforward up to 80% of taxable income. Which of the following is incorrect? A. Income tax payable in 2018 is zero. B. Net loss in 2018 is $79 million. C. The deferred tax asset balance at the end of 2018 is $21 million. D. The deferred tax asset balance decreases in 2019. E. Income tax expense in 2019 is zero