During its first year of operations, a corporation elected to use the straight line method of depreci- ation for financial reporting purposes and MACRS in determining taxable income. If the income tax rate is 10% and the amount of depreciation expense is $60,000 under the straight line method and $100,000 under MACRS, what is the amount of in- come tax deferred to future years? A. $16,000 C. $40,000 AppendixLO1