3 On January 1, 2021, Piper Corp. purchased 25% of the voting common stock of Betz, Inc. and appropriately accounts for its investment by the equity method. During 2021, Betz reported earnings of $1,200,000 and paid dividends of $400,000. Piper assumes that all of Betz's undistributed earnings will be distributed as dividends in future periods when the enacted tax rate will be 20%. Ignore the dividend-received deduction. Piper's current enacted income tax rate is 15%. The increase in Piper's deferred income tax liability for this temporary difference is

a. $160,000.

b. $120,000.

c. $60,000.

d. $40,000.