Ayres Services acquired an asset for $120 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the assets cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: ($ in millions) 2018 2019 2020 2021 Pretax accounting income $ 430 $ 450 $ 465 $ 500 Depreciation on the income statement 30.0 30.0 30.0 30.0 Depreciation on the tax return (35.0 ) (43.0 ) (25.0 ) (17.0 ) Taxable income $ 425 $ 437 $ 470 $ 513