At the end of year 6, the tax effects of temporary differences reported in Maple Company’s year- end financial statements were as follows:
Deferred tax assets (liabilities)
Accelerated tax depreciation ………………………………… $(120,000)
Warranty expense…………………………………………….. 80,000
NOL carry forward …………………………………………... 200,000
$ 160,000
A valuation allowance was not considered necessary. Maple anticipates that $ 40,000 of the deferred tax liability will reverse in year 7, that actual warranty costs will be incurred evenly in years 8 and 9, and that the NOL carry forward will be used in year 7. On Maple’s December 31, year 6 balance sheet, what amount should be reported as a current deferred tax asset under U. S. GAAP?
a. $ 160,000
b. $ 200,000
c. $ 240,000
d. $ 280,000