Answer:
D. $19 million
Explanation:
The computation of the deferred tax liability for three years is shown below:
Total depreciation would be $60 million
For each year it would be = $60 million ÷ 3 years = $20 million
For the first year, it would be
= $20 million × 35%
= $7 million
For the second year, it would be
= $20 million × 30%
= $6 million
the first year, it would be
= $20 million × 30%
= $6 million
So, the total would be
= $7 million + $6 million + $6 million
= $19 million