8. At the beginning of Year 1, XYZ Company purchases equipment with cost of $100,000, estimated useful life of four years, and salvage value of $20,000. This is the only equipment the company owns. For Year 1 the company will use straight line depreciation for financial double declining balance method for tax purposes. The company has never previously utilized different accounting for financial versus tax reporting. purposes and The company reflects $150,000 in pre-tax, pre-depreciation income for Year 1, with a tax rate of 40%. What is the amount of deferred tax liability reflected on their balance sheet at the end of Year 1? a. $5,000 b. $0 c. $15,000 d. $12,000 None of the above answers are correct e. 18. If a company uses straight line depreciation for financial purposes and double declining balance for tax purposes for an asset purchase with multi-year life, and the company has never previously utilized different accounting for financial vs. tax reporting, whish statement is accurate? a. The company will have negative deferred tax expense in the first year of the asset life and positive deferred tax expense in the last year of the product life. b. The company will have negative deferred tax expense in the first year of the asset life and zero deferred tax expense in the last year of the product life. c. The company will have positive deferred tax expense in the first year of the asset life and negative deferred tax expense in the last year of the product life. d. None of the above Use the following information for questions 13 and 14. Following is financial information for Chevie, Inc., for the year ended December 31, 2020 (in thousands). Use the parsimonious method of forecasting to project net operating profit after tax (NOPAT) and net operating assets (NOA) for 2024. $3,204,577 Sales Net operating profit after tax (NOPAT) Operating assets Operating liabilities 236,186 2,271,385 2,026,386 Assume that net operating profit margin (NOPM) and net operating asset turnover (NOAT) will remain at 2020 levels. Assume that sales will grow at 12% per year. he net 13. Using the parsimonious of forecasting to project, what operating profit after tax (NOPAT) for 2024? a. $265,595 b. $333,163 c. $373,142 d. $297,467 14. Using the parsimonious method of forecasting to project, what is the net operating assets (NOA) for 2024? a. $344,205 b. $385,509 c. $274,398 d. $307,326