Clunker Car Corporation reported a $3 million contingent liability on its 2015 financial statements from a lawsuit over faulty ignition switches.The tax rate for 2015 is 40%; however the enacted tax rates for the following three years is 37%,35%,and 33% respectively.
How will the deferred tax asset be measured if the case is resolved in 2016?
How will it be measured if the case is resolved in 2018?
What accounts for this difference?

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The Answer of Clunker Car Corporation reported a $3 million contingent liability on its 2015 financial statements from a lawsuit over faulty ignition switches.The tax rate for 2015 is 40%; however the enacted tax rates for the following three years is 37%,35%,and 33% respectively.
How will the deferred tax asset be measured if the case is resolved in 2016?
How will it be measured if the case is resolved in 2018?
What accounts for this difference?

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