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At December 31, DePaul Corporation had a $12 million balance in its deferred tax asset account and a $60 million balance in its deferred tax

At December 31, DePaul Corporation had a $12 million balance in its deferred tax asset account and a $60 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences:

1.

Estimated warranty expense, $30 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty).

2. Depreciation expense, $150 million: straight-line in the income statement; MACRS on the tax return.
3.

Income from installment sales of properties, $50 million: income recorded in the year of the sale; taxable when received equally over the next five years.

4.

Rent revenue collected in advance, $10 million; taxable in the year collected; recorded as income when earned the following year.

Required:

Determine the deferred tax amounts to be reported in the December 31 balance sheet. The tax rate is 30%. (Enter your answers in millions.)

in millions

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