Superior developers sells lots for residential development. when lots are sold, superior recognizes income for financial reporting purposes in the year of the sale. for some lots, superior recognizes income for tax purposes when collected. in the prior year, income recognized for financial reporting purposes for lots sold this way was $20 million, which would be collected equally over the next two years. the enacted tax rate was 40%. this year, a new tax law was enacted, revising the tax rate from 40% to 35% beginning next year. calculate the amount by which superior should reduce its deferred tax liability this year.

Juanita and sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore than it did when they were young. the water doesn't appear nearly as clear, and there seems to be less evidence of small water creatures living in the shallows. an afternoon at the local library convinces them that one major cause is the new factory nearby. after some discussion, they decide their next step should be identifying the cause of the changes identifying the problem picketing the guilty factory lobbying their elected representatives to complain about the problem talking to a local environmental group about solutions