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Attached is a picture of questions 10-12 that are associated with the table, I know the answers are 10. A, 11. D, and 12. A

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Attached is a picture of questions 10-12 that are associated with the table, I know the answers are 10. A, 11. D, and 12. A but am unsure how to get to this answer.

image text in transcribed
Use the following information for questions 10 12. The following information relates to Franklin Freightways for its rst year of operations (data in millions of dollars): was Pretax accounting income included: _ Fines for overweight trucks (never deductible for tax purposes} Depreciation in the tax return using MACRS: The applicable tax rate is 40%. There are no other temporary or permanent di'erences. 10. Franklin's balance sheet at the end of its rst year of operations should report: A deferred tax liability of $16 among its noncurrent liabilities. A deferred tax asset of $16 among its current assets. A deferred tax liability of $16 among its current liabilities. A deferred tax asset of $16 among its noncurrent assets. P-PP'P 11. Franklin's net income (in millions) for its rst year is: a. $134. 1}. $124. c. $119.4- d. $118. 12. At the end of its rst year of operations, Franklin should show (in millions): a. A current tax payable of $66. 1'}. A current tax payable of $36. c. A current tax payable of $70.6. d. A current tax receivable of $111 due to the NDL

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