33.

Hakuna Matata Corporation reported the following information at the end of 2021, its first year of operations:

Item	Amount
Pretax financial income	$603,000
Estimated warranty expense	$89,000
Income tax rate for all years	28%

The estimated warranty expense will be deductible in 2022 when it is expected to be paid. At the end of 2021, which of the following deferred tax accounts and balances should be reported on Hakuna Matata Corporations balance sheet?

Deferred tax liability: $89,000

Deferred tax asset: $24,920

Deferred tax liability: $24,920

Deferred tax asset: $89,000