Question: The following information is provided for a firm: Year123 Operating profit$325 million$309 million$330 million Capital expenditures$77 million$68 million$50 million Depreciation expense$8 million$7 million$6 million Taxes,

The following information is provided for a firm:

Year123

Operating profit$325 million$309 million$330 million

Capital expenditures$77 million$68 million$50 million

Depreciation expense$8 million$7 million$6 million

Taxes, GAAP$4 million$3 million$4 million

Taxes IRS-$1.5 million$3.8 million$5.2 million

How much will the firm report in its deferred taxes liability account in year 3?

Group of answer choices

$12.70 million

$5.20 million

$4.00 million

$3.50 million

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