Visano Ayres Services acquired an asset for $48 million in 2024. The asset is depreciated for financial reporting purposes over four years ona straight-line basis (no residual value). Ayers deducted 100% of the asset's cost for income tax reporting in 2024. The enacted tax rateis 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2024, 2025, 2026, and 2027 are as follows:($ in millions)Pretax accounting incomeDepreciation on the income statement2024$ 5001220252026$ 52012Depreciation on the tax return(48)(0)$ 53512(0)2027$ 57012(0)$ 464$ 532$ 547$ 582Taxable incomeRequired:For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) thebalance to be reported in the deferred tax liability account.Note: Leave no cell blank, enter "O" wherever applicable. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).Cumulative Temporary DifferenceDeferred Tax LiabilityBeginning of 2024End of 2024End of 2025End of 2026End of 2027

Deferred Tax Liability -Taxes that become due in one accounting period but are not paid in that…

Ayres Services acquired an asset for $48 million in 2024. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). Ayers deducted 100% of the asset's cost for income tax reporting in 2024. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2024, 2025, 2026, and 2027 are as follows: Pretax accounting income 2024 $ 500 ($ in millions) 2025 2026 $ 520 Depreciation on the income statement 12 12 $ 535 12 2027 $ 570 12 Depreciation on the tax return Taxable income (48) $ 464 (0) $ 532 (0) $ 547 (0) $ 582 Required: For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the nd in the deferred tax liability so