5 At the end of 20X3, its first year of operations, Poplar Company has $4,000 of taxable temporary differences. Currently enacted tax rates are: 20X3-35%; 20X4-40%; and 20X5-45%. Poplar expects the taxable temporary differences to reverse at the rate of $2,000 per year in each of the years 20X4 and 20X5. Poplar expects to report taxable income in each future year. Poplar should report a deferred tax liability at December 31, 20X3, of what amount? 1 $1,400 2 $1,500 3 $1,600 4 $1,700