Question $12$

NETFLIX Streaming Corp, reported a pretax book operating loss of $$850$ million in $2025.$ During $2025,$ NETFLIX recorded the following:

$$120$ million from insurance that was purchased in $2025$ but provides coverage for the next $2026$ year

$$24$ million in losses due to violations of the law that were recorded and paid in $2025.$

There were no other permanent or temporary differences. NETFLIX uses the carryforward method when calculating its taxes. The enacted tax rate is $30\%.$

The balance of the deferred tax asset at the end of $2025$ is

$$291\mathrm{.}0$ million

$$283\mathrm{.}8$ million

$$298\mathrm{.}2$ million

$$211\mathrm{.}8$ million