6) Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $698 million in sales of this type. Scheduled collections for these sales are as follows: 2021 2022 2023 2024 2025 $ 87 million 141 million 142 million 177 million 151 million S 698 million Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2022, what deferred tax liability would Isaac report in its year-end 2022 balance sheet? (Round your answer to the nearest whole million.) A) $59 million. B) $104 million. C) $118 million. D) $127 million. 7) Under its executive stock option plan, Q Corporation granted options on January 1, 2021, that permit executives to purchase 18.0 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $20 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures were anticipated; however, unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Ignoring taxes, what is the effect on earnings in 2023? (Round your answer to 1 decimal place.) A) $21.6 million. B) $24.0 million. C) $21.7 million. D) $22.8 million.