Use the following to answer questions 11-14: The following information relates to Interstate Trucking for its first year of operations (data in millions of dollars): Pretax accounting income: $150 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 5 Depreciation expense 70 Depreciation on the tax return using MACRS: 110 The applicable tax rate is 40%. There are no other temporary or nontemporary differences. Interstate's taxable income ($ in millions) is:

$40

$(25)

$110

$115

Interstate experienced ($ in millions) a:

1)	Tax liability of $46.

2)	Tax liability of $16.

3)	Tax liability of $50.6.

4)	Tax benefit of $10 due to the NOL.

Interstate's net income ($ in millions) is:

1)

$88.

2)

$99.4.

3)

$104.

4)

$134.

Interstate's balance sheet at the end of its first year would report:

1)	A deferred tax asset of $16 under noncurrent assets.

2)	A deferred tax liability of $16 under current liabilities.

3)	A deferred tax liability of $16 under noncurrent liabilities.

4)	None of the above.