7. Operating income and tax rates for Crane Companys first three years of operations were as follows:

	Income	Enacted tax rate
2020	$ 280000	25%
2021	($ 880000)	20%
2022	$ 1560000	30%

Assuming that Crane Company opts only to carryforward its 2021 NOL, what is the amount of deferred tax asset or liability that Crane Company would report on its December 31, 2021 balance sheet?

Amount

Deferred tax asset or liability

A. $ 176000

Deferred tax liability

B. $ 176000

Deferred tax asset

C. $ 220000

Deferred tax liability

D. $ 264000

Deferred tax asset