PLEASE HELP!! The answer is NOT 10,786 [The following information applies to the...

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Accounting

PLEASE HELP!! The answer is NOT 10,786

[The following information applies to the questions displayed below.]

Delta Air Lines revealed in its 10-K filing that its valuation allowance for deferred tax assets at the end of 2013 was $177 million, dramatically lower than the over $10 billion recorded at the end of 2012. Here is an excerpt from a press report from Bloomberg in January 2014, regarding this allowance: Delta Air Lines Inc. (DAL) led shares of U.S. carriers higher after posting fourth-quarter profit that topped analysts estimates and forecasting an operating margin of as much as 8 percent in this years initial three months. . . . Airlines are benefiting from lower fuel prices, constraints on capacity growth, controls on operating costs and demand thats keeping planes full, said Ray Neidl of Nexa Capital Partners LLC, a Washington-based aerospace and transportation consulting firm. . . . Net income was $8.48 billion, including an $8 billion non-cash gain from the reversal of a tax valuation allowance.

The following is an excerpt from a disclosure note to Deltas 2013 financial statements: NOTE 12. INCOME TAXES (In part) Deferred Taxes The components of deferred tax assets and liabilities at December 31 were as follows ($ in millions):

image Consider the excerpt from Bloombergs press release. Recalculate the effect on Deltas 2013 net income of the change in Deltas valuation allowance for its deferred tax assets.

\begin{tabular}{|c|c|c|} \hline & \multicolumn{2}{|c|}{ December 31} \\ \hline & 2013 & 2012 \\ \hline \multicolumn{3}{|l|}{ Deferred tax assets: } \\ \hline Net operating loss carryforwards & $6,024 & $6,414 \\ \hline Pension, postretirement and other benefits & 4,982 & 6,415 \\ \hline AMT credit carryforward & 378 & 402 \\ \hline Deferred revenue & 1,965 & 2,133 \\ \hline Other & 698 & 881 \\ \hline Valuation allowance & (177) & (10,963) \\ \hline Total deferred tax assets & $13,870 & $5,282 \\ \hline \multicolumn{3}{|l|}{ Deferred tax liabilities: } \\ \hline Depreciation & $4,799 & $4,851 \\ \hline Intangible assets & 1,704 & 1,730 \\ \hline Other & 639 & 285 \\ \hline Total deferred tax liabilities & $7,142 & $6,866 \\ \hline \end{tabular}

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