Need help with part C. Please show steps to solution.

Mark McDowell Co. establishes a $128,000,000 liability at the end of 2020 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2021. Also, at the end of 2020, the company has $64,000,000 of temporary differences due to excess depreciation for tax purposes, $8,960,000 of which will reverse in 2021. The enacted tax rate for all years is 20%, and the company pays taxes of $40,960,000 on $204,800,000 of taxable income in 2020. McDowell expects to have taxable income in 2021. (a) Your answer is correct. Determine the deferred taxes to be reported at the end of 2020. $ Deferred tax assets Deferred tax liabilities $ 25600000 12800000 Attempts: 1 of 3 used (b) Your Answer Correct Answer Your answer is correct. Indicate how the deferred taxes computed above are to be reported on the balance sheet. Mark McDowell Co. Balance Sheet (Partial) December 31, 2020 Non-current Asset Deferred Tax Asset 12800000 e Textbook and Media Solution List of Accounts Attempts: 3 of 3 used Assuming that the only deferred tax account at the beginning of 2020 was a deferred tax liability of $6,400,000, draft the income tax expense portion of the income statement for 2020, beginning with the line "Income before income taxes." (Hint: You must first compute (1) the amount of temporary difference underlying the beginning $6,400,000 deferred tax liability, then (2) the amount of temporary differences originating or reversing during the year, and then (3) the amount of pretax financial income.) (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Mark McDowell Co. Income Statement (Partial) For the Year Ended December 31, 2020 Income before Income Taxes Income Tax Expense - Current Deferred Net Income /(Loss) Mark McDowell Co. establishes a $128,000,000 liability at the end of 2020 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2021. Also, at the end of 2020, the company has $64,000,000 of temporary differences due to excess depreciation for tax purposes, $8,960,000 of which will reverse in 2021. The enacted tax rate for all years is 20%, and the company pays taxes of $40,960,000 on $204,800,000 of taxable income in 2020. McDowell expects to have taxable income in 2021. (a) Your answer is correct. Determine the deferred taxes to be reported at the end of 2020. $ Deferred tax assets Deferred tax liabilities $ 25600000 12800000 Attempts: 1 of 3 used (b) Your Answer Correct Answer Your answer is correct. Indicate how the deferred taxes computed above are to be reported on the balance sheet. Mark McDowell Co. Balance Sheet (Partial) December 31, 2020 Non-current Asset Deferred Tax Asset 12800000 e Textbook and Media Solution List of Accounts Attempts: 3 of 3 used Assuming that the only deferred tax account at the beginning of 2020 was a deferred tax liability of $6,400,000, draft the income tax expense portion of the income statement for 2020, beginning with the line "Income before income taxes." (Hint: You must first compute (1) the amount of temporary difference underlying the beginning $6,400,000 deferred tax liability, then (2) the amount of temporary differences originating or reversing during the year, and then (3) the amount of pretax financial income.) (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Mark McDowell Co. Income Statement (Partial) For the Year Ended December 31, 2020 Income before Income Taxes Income Tax Expense - Current Deferred Net Income /(Loss)