TB MC Qu. 16-39 (Algo) The following information relates to Franklin... The following Information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $507 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 5 Depreciation expense 100 Depreciation in the tax return 260 The applicable tax rate is 25%. There are no other temporary or permanent differences. Franklin's balance sheet at the end of its first year would report: Multiple Choice A deferred tax liability of $40 million among noncurrent liabilities. A deferred tax liability of $40 million among current liabilities. A deferred tax asset of $40 million among noncurrent assets. A deferred tax asset of $40 million among current assets.