ABC started operations in 2021. ABC recognizes property sales in the period of sale for financial reporting purposes and when it collects cash from the buyer for tax purposes. In 2021, ABC had $700 million in sales of this type. Related collections are scheduled as follows:

2021	$	60	million
2022		120	million
2023		120	million
2024		150	million
2025		250	million
	$	700	million

The income tax rate is 25%.

a) What deferred tax liability would ABC report at the end of 2022?

b) Due to a change in tax code, ABC will be taxed in 2023 and beyond at 30%, rather than 25%. What deferred tax liability will ABC report at the end of 2022?

Can someone please explain how to answer this problem? thank you