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Exercise 16-4 (Algo) Taxable income given; calculate deferred tax liability from book-tax difference [LO16-2] Ayres Services acquired an asset for $144 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: $370 (5 in millions) 2021 2022 2023 2024 $390 $405 $440 36 36 36 (57) (49) (23) (15) $349 $377 $418 $461 Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income 36 Required: For December 31 of each year, determine (a) the cumulative temporary book tox difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "o" wherever applicable. Enter your answers in millions rounded to 2 decimal place (.e., 5,500,000 should be entered as 5.50).) Note: Temporary differences should be computed as depreciation expense on the income statement minus depreciation expense on the tax return (e.g. If depreciation expense is higher on the income statement than on the tax return, the difference will be positive, if depreciation expense is lower on the income statement than on the tax return, the difference will be negative.) Cumulative Temporary Difference Deferred Tax Liability Beginning of 2021 End of 2021 End of 2022 End of 2023 End of 2024 $ 0.00 $ 21.00 $ 34.00 $ 21.00 $ 0.00 $ 0.00 $ 5.25 $ 8.50 $ 5.25! S 0.00