1. Cord company began operations in 2010. The company reported 32,000 of depreciation expense on its income statement in 2019. On its tax returns, the company deducted 48,000 for depreciation in 2019. Assuming a 40% tax rate, how much deferred tax liability will cord report at the end of 2019?

a. 16,000 b. 19,200 c. 6,400 d. 25,600

2. A deferred tax asset arises when tax reporting income is less than financial reporting income. T/F