A company has pretax accounting income of $291,000 and taxable income of $300,000 in 2011. The only difference is estimated product warranty costs for sales this year. Warranty payments are expected to be in equal amounts over the next three years. The tax rate will change from 40% to 30% in 2013. What is the deferred tax liability or asset that should be recorded? Select one: a. $1.2 million tax liability b. $3.6 million tax liability c. $2.7 million tax asset d. $2.7 million tax liability e. $3 million tax asset