Richard McDowell Co. establishes a $114,000,000 liability at the end of 2020 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2021. Also, at the end of 2020, the company has $57,000,000 of temporary differences due to excess depreciation for tax purposes, $7,980,000 of which will reverse in 2021. The enacted tax rate for all years is 20%, and the company pays taxes of $36,480,000 on $182,400,000 of taxable income in 2020. McDowell expects to have taxable income in 2021. (a) Your answer is correct. Determine the deferred taxes to be reported at the end of 2020. Deferred tax assets 22,800,000 i Deferred tax liabilities $ 11,400,000 Attempts: 2 of 3 used Assuming that the only deferred tax account at the beginning of 2020 was a deferred tax liability of $5,700,000, draft the income tax expense portion of the income statement for 2020, beginning with the line Income before income taxes. (Hint: You must first compute (1) the amount of temporary difference underlying the beginning $5,700,000 deferred tax liability, then (2) the amount of temporary differences originating or reversing during the year, and then (3) the amount of pretax financial income.) (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Richard McDowell Co. Income Statement (Partial) $ v > Save for Later Attempts: 0 of 3 used Submit