Which of the following items will result in the recognition of a deferred tax asset or liability in the second quarter of 20X7 for Nelson Company?

a. The portion of dividends received this quarter on an investment in stock of a U.S. corporation that qualifies for the dividend exclusion.

b. A provision of an expected loss from a lawsuit that is finally settled in 20X8.

c. Expenses related to the acquisition of a municipal bond whose income is not taxable for income tax purposes.

d. Life insurance payments made on policies for executives for which the company is the beneficiary.