8. During 2016, its first year of operations, Eli-Wallace Distributors reported pretax accounting income of $200 million which included the following amounts 1. Income (net) from installment sales of warehouses in 2016 of $9 million will be reported for tav purposes in 2017 ($5 million) and 2018 ($4 million) 2. Depreciation is reported by the straight-line method on an asset with a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions) 2016 2017 2018 2019 Income Statement $50 $50 $50 $50 Tax Return $66 $88 $30 $16 Difference $(16) $(38) $20 $ 34 8. During 2016, its first year of operations, Eli-Wallace Distributors reported pretax accounting income of $200 million which included the following amounts 1. Income (net) from installment sales of warehouses in 2016 of $9 million will be reported for tav purposes in 2017 ($5 million) and 2018 ($4 million) 2. Depreciation is reported by the straight-line method on an asset with a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions) 2016 2017 2018 2019 Income Statement $50 $50 $50 $50 Tax Return $66 $88 $30 $16 Difference $(16) $(38) $20 $ 34