Exercise 19-19 Andy McDowell Co. establishes a $162,800,000 liability at the end of 2014 for the estimated litigation settlement for manufacturing defects. All related costs will be paid and deducted on the tax return in 2015. Also, at the end of 2014, the company has $81,400,000 of temporary differences due to excess depreciation for tax purposes, $11,396,000 of which will reverse in 2015 The enacted tax rate for all years is 40%, and the company pays taxes of $104,192,000 on $260,480,000 of taxable income in 2014, Shamess expects to have taxable income in 2015 Determine the deferred taxes to be reported at the end of 2014. Deferred tax assets Deferred tax liabilities