Ayres Services acquired an asset for $32 million in 2024 ....
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Accounting
Ayres Services acquired an asset for $32 million in 2024 . The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). Ayers deducted 100% of the asset's cost for income tax reporting in 2024 . The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2024, 2025, 2026, and 2027 are as follows: For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. Note: Leave no cell blank, enter " 0 " wherever applicable. Enter your answers in millions (i.e., 10,000,000 should be entered as 10)
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