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Ayres Services acquired an asset for $80 million in 2024. The asset is depreciated for...

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Accounting

Ayres Services acquired an asset for $80 million in 2024. The asset is depreciated for financial reporting purposes over four years on
a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 25%.
Amounts for pretax accounting income, depreciation, and taxable income in 2024,2025,2026, and 2027 are as follows:
Required:
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 "O" wherever applicable. Enter your answers in millions rounded to 2 decimal places (i.e.,
5,500,000 should be entered as 5.50).
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