16. HK Corporation purchased a machine on January 2, 2017, for $4,000,000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes: 2017 $800,000 2020 $460,000 2018 1,300,000 2021 460,000 2019 768,000 2022 232,000 Assuming an income tax rate of 40% for all years, the net deferred tax liability that should be reflected on HK's balance sheet at December 31, 2018 be a $150,000 b. $200,000 c. $225,000 d. $75,000