A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended December 31, 2018, its first year of operations. The income tax rate is 40%.
Pretax accounting income (income statement)	$	300,000
Interest revenue on municipal securities		(15,000	)
Warranty expense in excess of deductible amount		25,000
Depreciation in excess of financial statement amount		(70,000	)
Taxable income (tax return)	$	240,000

What amount(s) should Fieval report related to deferred income taxes in its 2018 balance sheet?

		A) deferred tax asset of $10,000 and deferred tax liability of $28,000.
		B) deferred tax liability of $18,000
		C) deferred tax asset of $4,000 and deferred tax liability of $28,000.
		D) deferred tax liability of $24,000.