The following information is provided for a firm:

Year 1 2 3

Operating profit $325 million $309 million $330 million

Capital expenditures $77 million $68 million $50 million

Depreciation expense $8 million $7 million $6 million

Taxes, GAAP $4 million $3 million $4 million

Taxes IRS -$1.5 million $3.8 million $5.2 million

How much will the firm report in its deferred taxes liability account in year 3?

Group of answer choices

$12.70 million

$4.00 million

$3.50 million

$5.20 million