Ayres Services acquired an asset for $$168$ million in $2024.$ The asset is depreciated for financial reporting purposes over four years on

a straight$-$line basis $($no residual value$).$ For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is $25\%.$

Amounts for pretax accounting income, depreciation, and taxable income in $2024,2025,2026,$ and $2027$ are as follows:

Required:

For December $31$ of each year, determine $($a$)$ the cumulative temporary book$-$tax difference for the depreciable asset and $($b$)$ the

balance to be reported in the deferred tax liability account.

Note: Leave no cell blank, enter $"0"$ wherever applicable. Enter your answers in millions rounded to $2$ decimal places $($i$.$e$.,$

$5,500,000$ should be entered as $5\mathrm{.}50).$Ayres Services acquired an asset for $$168$ million in $2024.$ The asset is depreciated for financial reporting purposes over four years on a straight$-$line basis $($no residual value$).$ For tax purposes the asset$$s cost is depreciated by MACRS. The enacted tax rate is $25\%.$ Amounts for pretax accounting income, depreciation, and taxable income in $2024,2025,2026,$ and $2027$ are as follows:

$($$ in millions$)$

$2024202520262027$

Pretax accounting income $ $385$ $ $405$ $ $420$ $ $455$

Depreciation on the income statement $42424242$

Depreciation on the tax return $(60)(64)(26)(18)$

Taxable income $ $367$ $ $383$ $ $436$ $ $479$

Required:

For December $31$ of each year, determine $($a$)$ the cumulative temporary book$-$tax difference for the depreciable asset and $($b$)$ the balance to be reported in the deferred tax liability account.

Note: Leave no cell blank, enter $"0"$ wherever applicable. Enter your answers in millions rounded to $2$ decimal places $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}50).$

DONT USE CHATGPT