Use the following information for questions 10 12. The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $200 Pretax accounting income included: Fines for overweight trucks (never deductible for tax purposes) 5 Depreciation expense 70 Depreciation in the tax return using MACRS: 110 The applicable tax rate is 40%. There are no other temporary or permanent differences. 10. Franklins balance sheet at the end of its first year of operations should report: Answer is A deferred tax liability of $16 among its noncurrent liabilities. 11. Franklins net income (in millions) for its first year is: Answer is $118.

I have you the answers for both of them but I don't is how are they getting the answers. Please show your steps to how to get those answers.