[09] Brite Lytes, Inc., purchased equipment very late in 2016. Based on generous capital cost allowance rates provided in the Income Tax Act, the company claimed CCA on its 2016 tax return but did not record any depreciation because the equipment was being tested. This temporary difference is expected to reverse and the excess depreciation allowed in 2016 would result in equal net taxable amounts in each of the next three years. This is the only timing difference in 2016. Enacted tax rates (all known at the end of 2016) are 40% in 2016, 35% in 2017 and 2018, and 30% in 2019.

Brite Lytes reported a pretax accounting income of $9,000,000 for the financial year ending December 31, 2016. Based on a reconciliation of the pre-tax accounting income, the company prepared the following journal entry to record the tax payable for the year:

DRCurrent Income Tax Expense $3,492,000

CR Income Tax payable $3,492,000

The total future tax liability to be reported on the company's balance sheet at December 31, 2016, is

Select one:

a.

$108,000

b.

$81,000

c.

$94,500

d.

$90,000

e.

none of the above numbers