Charlotte Ave started operations in 2021 and recognizes revenue from its installment sales in the period that it sells i

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Charlotte Ave started operations in 2021 and recognizes revenue
from its installment sales in the period that it sells its
custom-made motor homes. For its income tax purposes,
however, Charlotte Ave recognizes revenue when it collects cash
from the purchasers of the motor homes. Charlotte Ave has a
40% combined Federal and State income tax rate.
In 2021, Charlotte Ave’s total installment sales of the
custom-made motor homes were $75 million with collections as
follows (actual 2021 collections and estimated collections
thereafter):
2021 $30
million (actual collections)
2022 $15
million (estimated collections)
2023 $15
million (estimated collections)
2024 $15
million (estimated collections
$75 million
16a. Ignoring all other information, what is the amount of
Charlotte Ave’s Deferred Tax Asset or Deferred Tax
Liability at December 31, 2021 (answer must also specify
whether a DTA or DTL)?
16b. Ignoring all other information, what is the amount of
Charlotte Ave’s Deferred Tax Asset or Deferred Tax
Liability at December 31, 2022 (answer must also specify
whether a DTA or DTL)?
16c. As a result of a new tax plan enacted by the new
administration, the Corporate tax rate in 2023 was increased from
40% to 50%.
(16c-1) What adjustment, if any, of the Deferred
Tax Asset or Deferred Tax Liability account at December 31,
2023 (must also specify whether DTA or DTL):
(16c-2) What is the balance of the Deferred Tax
Asset or Deferred Tax Liability account at December 31,
2023 (must also specify whether DTA or DTL):