You are the new accounting manager at the Barry Transport Company. Your CFO has asked you to provide input on the company's income tax position based on the following: 1.Pretax accounting income was $41 million and taxable income was $8 million for the year ended December 31, 2016. 2. The difference was due to three items: a. Tax depreciation exceeds book depreciation by $30 million in 2016 for the business complex acquired that year. This amount is scheduled to be $60 million in 2017 and to reverse as ($50 million) and ($40 million) in 2018, and 2019, respectively b. Insurance of $9 million was paid in 2016 for 2017 coverage. c. A $6 million loss contingency was accrued in 2016, to be paid in 2018. 3. No temporary differences existed at the beginning of 2016. 4. The tax rate is 40%