Bayerische Motoren Werke AG, commonly referred to as BMW, is a German multinational company that produces automobiles and motorcycles. The company was founded in 1916 as a manufacturer of aircraft engines, which it produced from 1917 until 1918 and again from 1933 to 1945. BMW includes the following footnotes in its 2018 annual report. Taxes on income of the BMW Group comprise the following:

in million	2018	2017
Current tax expense	2,220	2,558
Deferred tax expense (+)/deferred tax income ()	355	-558
thereof relating to temporary differences	641	-502
thereof relating to tax loss carryforwards and tax credits	-286	-56
Income taxes	2,575	2,000

The difference between the expected tax expense based on the underlying tax rate for Germany and actual tax expense is explained in the following reconciliation:

in million	2018	2017
Profit before tax	9,030	9,821
Tax rate applicable in Germany	30.8%	30.7%
Expected tax expense	2,781	3,015
Variances due to different tax rates	-359	-1026
Tax increases (+)/tax reductions () as a result of nondeductible
expenses and tax-exempt income	141	58
Tax expense (+)/benefits () for prior years	-16	-104
Other variances	-214	-205
Actual tax expense	2,333	1,738

The allocation of deferred tax assets and liabilities to balance sheet line items at 31 December is shown in the following table:

	Deferred Tax	Deferred Tax
in million	Assets 2018	Liabilities 2018
Intangible assets	22	3,077
Property, plant and equipment	171	359
Leased products	487	5,210
Other investments	3	20
Sundry other assets	1,185	3,254
Tax loss carryforwards and capital losses	891
Provisions	5,323	29
Liabilities	2,570	620
Eliminations	3,180	981
	13,832	13,550
Valuation allowances on tax loss carryforwards and
capital losses	-458	0
Netting within tax jurisdictions	-11,744	-11,744
Deferred taxes	1,630	1,806
		176

Required a. What income tax expense does BMW report in its 2018 income statement? Answer million How much of this expense was paid during the year or is currently payable? Answer million b. Determine the companys effective tax rate. Note: Round your percentage to one decimal place (for example, enter 6.7% for 6.6655%). Answer% c. What is the companys marginal (statutory) tax rate? Note: Round your percentage to one decimal place (for example, enter 6.7% for 6.6655%). Answer% d. Does BMW report a net deferred tax asset or liability on its balance sheet? The company reports a net deferred tax Answerassetliability of Answer million