Isaac Incorporated began operations in January 2024. 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 2024, Isaac had $703 million in sales of this type. Scheduled collections for these sales are as follows:

2024	$ 88	million
2025	142	million
2026	143	million
2027	178	million
2028	152	million
	$ 703	million

Assume that Isaac has a 30% income tax rate and that there were no other differences in income for financial statement and tax purposes.

Suppose that, in 2025, legislation revised the income tax rates so that Isaac would be taxed in 2026 and beyond at 25%, rather than 30%. Assume that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2025, what deferred tax liability would Isaac report in its year-end 2025 balance sheet?

Note: Round your answer to the nearest whole million.

$274 million

$163 million

$121 million

$118 million