Quiz Company began operations in 2019. Pretax accounting income for the tax year ended in December 31, 2020 was $88 million. The amount included the following:

*Insurance expense of $14 million for one-third of a $42 million, three year liability policy that was fully deducted for tax purposes in 2020.

*Insurance expense for a $2 million premium paid for a life insurance policy that guarantees a $50 million payment upon the death of the company president. The premium is not deductible for tax purposes. The possible $50 million proceeds will not be taxable (Hint: This is a permanent difference. We talked a little about permanent differences but did not see an example in the lectures. All you do is add the $2 million to the $88 million of pretax accounting income. The $2 million, since it is a permanent difference, does not give rise to any future taxable or deductible amounts - in other words, no temporary difference to determine taxable income).

*An asset with a four-year useful life acquired in 2019 is depreciated on a straight-line basis for accounting and by MACRS for tax purposes resulting in the following accounting and tax amounts

2019: $150 million in accounting depreciation, $198 million in tax depreciation

2020: $150 million in accounting depreciation, $264 million in tax depreciation

2021: $150 million in accounting depreciation, $90 million in tax depreciation

2022: $150 million in accounting depreciation, $48 in tax depreciation

*Rental revenue of $80 million collected in 2020. An additional $20 million was collected as an advance payment for 2021 rent and properly recorded as deferred rent revenue. The entire $100 million of collections was taxable in 2020.

As of December 31, 2019, Quiz Company reported a deferred tax liability of $12 million related to the temporary difference for depreciation in 2019. The company had no other deferred tax liability or asset to begin 2020. The enacted tax rate was 25%.

The amount of the credit to income tax payable and to deferred tax liability in the journal entry to recognize income taxes on December 31, 2020 should be___________ and ___________.

This is what I have (my answers were wrong and I do not understand why):

2020 2021 2022 Future Taxable Amount Future Deductible Amount

Pretax Accounting Income $ 88,000,000

Permanent Difference $ 2,000,000

Temp. Differences

Insurance $ 42,000,000 ($14,000,000) ($ 14,000,000) $ 28,000,000

Rent Revenue $100,000,000 ($20,000,000) $20,000,000

Depreciation ($114,000,000) ($60,000,000) ($112,000,000) $112,000,000

-----------------------------------------------------------------------------------------------------------------------------------

Taxable Income $118,000,000 $20,000,000 $210,000,000

Tax Rate 25% 25% 25%

-----------------------------------------------------------------------------------------------------------------------------------

Tax Payable $ 29,500,000 $ 5,000,000 $ 52,500,000

Deferred Tax Liability Deferred Tax Asset

------------------------ --------------------------

| 12,000,000 0 |

| 40,500,000 5,000,000 |

--------------------------- ---------------------------

| 52,500,000 5,000,000 |

12/31/2020 Income Tax Expense $65,000,000

Deferred Tax Asset $ 5,000,000

Deferred Tax Liability $40,500,000

Income Tax Payable $29,500,000

What am I doing wrong? Thank you for you help.