Apple reports the following information:

Taxable Income: 300,000

Pretax Accounting Income: 400,000

A single temporary difference exists that was new in the current year. Apple is subject to a tax rate of 40%.

On the year-end balance sheet for Apple, you would find:

Question options:

	A deferred tax asset for $40,000.
	A deferred tax liability for $40,000
	A deferred tax liability for $120,000.
	Income taxes payable for $160,000.