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Corning-Howell reported taxable income in 2018 of $190 million. At December 31, 2018, the reported amount of some assets and liabilities in the financial statements
Corning-Howell reported taxable income in 2018 of $190 million. At December 31, 2018, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Carrying Amount Tax Basis Assets Current $ 10 million 12 million Net accounts receivable Prepaid insurance Prepaid advertising 37 million 7 million 0 Noncurrent Investments at fair value with changes in OCI Buildings and equipment (net) 6 million 460 million 350 million Liabilities Current Liability-subscriptions received 28 million Long-term Liability-postretirement benefits 585 million Gains and losses taxable when investments are sold The total deferred tax asset and deferred tax liability amounts at January 1, 2018, were $260 million and $60 million, respectively. The enacted tax rate is 40% each year Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2018
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