Cremmins, Inc., owns 60 percent of Anderson. During the current year, Anderson reported net income of $200,000 but paid a total cash dividend of only $40,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 30 percent.

a. $5,760. LO9

b. $9,600.

c. $12,840.

d. $28,800.