At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations: 1. Estimated warranty expense, $24 million temporary difference: expense recorded in the year of the sale, tax-deductible when paid (one-year warranty).
2. Depreciation expense, $104 million temporary difference: straight-line in the income statement: MACRS on the tax return.
3. Income from installment sales of properties. $80 million temporary difference: income recorded in the year of the sale: taxable when received equally over the next five years.
4. Rent revenue collected in advance. $24 million temporary difference; taxable in the year collected; recorded as income when the performance obligation is satisfied in the following year.
Required:
Assuming DePaul will show a single noncurrent net amount in its December 31 balance sheet, indicate that amount and whether it is a net deferred tax asset or liability. The tax rate is 25%.