A-V World reported pretax book income in x1 of $500 million. For tax purposes income is $320 million. The temporary

cumulative difference is expected to reverse as shown below. The enacted tax rates are 40% in x1, 35% in x230% in x3, and 25% in x4 and later.

X1 X2 X3 X4 X5 Total

Accounting Income $500 $100 $100 $100 $100 $900

-180 60 50 40 30 0

Taxable Income $320 $160 $150 $140 $130 $900

Future taxable(deductible) amount 60 50 40 30 $180

Enacted tax rate 40% 35% 35% 25% 25%

How much are the deferred tax assets(liabilities) reversed in year 4?

Group of answer choices

21

15

7.5

10