Hello,

Could you please help me with these questions and explain me the answers that way I can learn.

1. a. In 2017, Smith Corp's financial statement showed accrued losses on disposal of unused plant facilities of $3,600,000. The facilities were sold in December 2018 and a $3,600,000 loss was recognized for tax purposes then.
2. b. in 2018, Smith Corp's paid $150,000 for a two-year life insurance policy for their CEO Smith, and the company was the beneficiary.

Enacted tax rate is 35% in both 2017 and 2018.

Question 1. the amount reported as net deferred income taxes on Smith's balance sheet at December 31, 2017 should be an Asset or Liability?

Question 2. what would the amount be? (please in this question explain me the steps of the calculation and give me an explanation so I can understand and learn.)

Question 3. Trump enacted the tax cut and job act in 2018 and effectively changed the corporate tax rate to 21%. For Smith's quarterly financial statement on March 2018, how would this change in tax rate impact Smith's net deferred income taxes? (please in this question explain me the steps of the calculation and give me an explanation as well so I can understand and learn.)

Question 4. Is this change after the tax rate cut counter-intuitive? please explain me Why and why not?

The information given is all the information I have so please don't say it is incomplete.

Thank you so much!