A company commenced business on 1 July 2022. On 30 June 2023, a draft statement of financial position disclosed the following information: accounts receivable $35,000, allowance for doubtful debts $5,000, rent receivable $15,000, equipment $150,000, accumulated depreciation equipment $15,000, and provision for long service leave $8,000.

The equipment was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes. The company tax rate is 30%.

In a deferred tax worksheet, the ending balances for the deferred tax accounts are:

Select one:

a.

Deferred Tax Liability $9,000; Deferred Tax Asset $3,900

b.

Deferred Tax Liability $30,000; Deferred Tax Asset $13,000

c.

Deferred Tax Liability $3,900; Deferred Tax Asset $9,000

d.

Deferred Tax Liability $13,000; Deferred Tax Asset $30,000