Clunker Car Corporation reported a $3 million contingent liability on its 2018 financial statements from a lawsuit over faulty ignition switches. The tax rate for 2018 is 40% However the enacted tax rates for the following three years are 37%, 35%, and 33% respectively.
How will the deferred tax asset be measured if the case is expected to be resolved in 2019?
How will it be measured if the case is expected to be resolved in 2021?
What accounts for this difference?

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The Answer of Clunker Car Corporation reported a $3 million contingent liability on its 2018 financial statements from a lawsuit over faulty ignition switches. The tax rate for 2018 is 40% However the enacted tax rates for the following three years are 37%, 35%, and 33% respectively.
How will the deferred tax asset be measured if the case is expected to be resolved in 2019?
How will it be measured if the case is expected to be resolved in 2021?
What accounts for this difference?

Clunker Car Corporation Reported a $3 Million Contingent Liability on Its