versity of ph n https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducat Soved 2 - Practice: Knowledge Check [due Day 5] @ Check my work mode : This shows what is correct or incorrect for the work you have Exercise 16-4 (Static) Taxable income given; calculate deferred tax liability from book-tax difference [LO16-2] Ayres Services acquired an asset for $80 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions) 2021 2022 2023 2024 Pretax accounting income $330 $350 $365 $400 Depreciation on the income statement 20 20 20 20 Depreciation on the tax return (25) (33) (15) (7) Taxable income $325 $337 $370 $413 Required: For December 31 of each year, determine (a) the cumulative 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 "0" wherever applicable. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) * Answer is not complete. Beginning of 2021 End of 2021 End of 2022 End of 2023 End of 2024 Cumulative Temporary Difference 0.00 $0.00 Deferred Tax Liability 0.00 $ 0.00