For classification purposes, a valuation allowance:

Multiple Choice

• Is allocated proportionately between deferred tax assets and deferred tax liabilities.

• Is allocated proportionately between the current and noncurrent portions of the deferred tax asset.

• Is contra to the deferred tax asset and classified as noncurrent.

• Is added to the deferred tax asset and classified as current.

Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $703 million in sales of this type. Scheduled collections for these sales are as follows:

2021	$	88	million
2022		142	million
2023		143	million
2024		178	million
2025		152	million
	$	703	million

Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2021 balance sheet? (Round your answer to the nearest whole million.)

Multiple Choice

• $46 million.

• $126 million.

• $568 million.

• $154 million.