In 2017, Kerry Corps 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. Also in 2018, Kerry Corps paid $150,000 for a two-year life insurance policy for their CEO Kerry, and the company was the beneficiary. Assuming that the enacted tax rate is 35% in both 2017 and 2018, and that Kerry paid $1,170,000 in income taxes in 2017.

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

2. what would the amount be (show steps)?

3. Trump enacted the tax cut and job act in 2018 and effectively changed the corporate tax rate to 21%. For Kerrys quarterly financial statement on March 2018, how would this change in tax rate impact Kerrys net deferred income taxes? Show me your calculation.

4. Is this change counter-intuitive for you? Why and why not?