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the answer above is not correct Ayres Services acquired an asset for $90...

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Accounting

imagethe answer above is not correct

Ayres Services acquired an asset for $90 million in 2018. 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 40%. Amounts for pretax accounting Income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income 2018 $ 355 22.5 (27.5) $ 350 ($ in millions) 2019 2020 $ 375 $ 390 22.5 22.5 (35.5) (17.5) $ 362 $ 395 2021 $ 425 22.5 (9.5) $ 438 Required: Determine (a) the temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "O" wherever applicable. Show all amounts as positive amounts. Enter your answers in millions rounded to 1 decimal place (I.e., 5,500,000 should be entered as 5.5).) Beginning of 2018 End of 2018 End of 2019 End of 2020 End of 2021 $ 22.5 5 5.0 5 13. 0 5 5.0 5 13.0 Temporary Difference Deferred Tax Liability

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