Matthew Company reported #350,000 in income before income tax for financial reporting book purposes in year 3 its first year of operation the tax depreciation exceeded its book depreciation by $30,000 the tax rate for year 3 and all future years is 40% what amount of deferred income tax should matthew report in its December 31 year 3 balance shee?

a. 8,000 deferred tax asset

b. 9,000 deferred tax liability

c. 10,000 deferred tax asset

d. 12,000 deferred tax liability