Ayres Services acquired an asset for $112 million in 2021. 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 2021, 2022, 2023, and 2024 are as follows:

 

 ($ in millions)  2021 2022 2023 2024 Pretax accounting income$350  $370  $385  $420  Depreciation on the income statement 28   28   28   28  Depreciation on the tax return (53)  (29)  (19)  (11) Taxable income$325  $369  $394  $437  

Required:

For December 31 of each year, determine (a) the temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "0" wherever applicable. Enter your answers in millions rounded to 2 decimal place (i.e., 5,500,000 should be entered as 5.50).)

F -> CX C Exercise 20-15 (Algo) Deferred 1 X Course Heronewconnect.mheducation.com/flow/connect.htmlX+Chapter 16 iSavedHelpSave & ExitCheck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion.Return to quAyres Services acquired an asset for $112 million in 2021. The asset is depreciated for financial reporting purposes over four years on astraight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 25%10Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows:points($ in millions)Pretax accounting income2021 2022 20232024$ 350$370$385$420Depreciation on the income statement28282828Depreciation on the tax return(53)(29 )(19)(11)Taxable income$325$ 369$ 394$437Required:For December 31 of each year, determine (a) the temporary book-tax difference for the depreciable asset and (b) the balance to bereported in the deferred tax liability account. (Leave no cell blank, enter "0" wherever applicable. Enter your answers in millionsrounded to 2 decimal place (i.e., 5,500,000 should be entered as 5.50).)x Answer is not complete.Beginning ofEnd ofEnd ofEnd ofEnd of20212021202220232024Temporary Difference$0.00 ~ $ 25.00$17.00 $0.00Deferred Tax Liability$0.0010.40 X $0.00McPrey1 of 7Next >GrawHilljucation