At December 31, 2021, Vermont Industries reported three temporary differences between

accounting and taxable income. Vermont had $25,000 o

f future deductible amounts

resulting from accrued warranty liabilities. Vermont offers customers a one year

warranty on its products. Vermont had $55,000 in future taxable amounts associated

with depreciation on property and equipment, and $15,000 in fu

ture taxable amounts

associated with prepaid expenses that expire in 2022. No temporary differences existed

at December 31, 2020. The income tax rate is 40%. Vermont would report the following

amount(s) related to deferred taxes on its year end December

31, 2021 balance sheet:

A)

$18,000 net noncurrent deferred tax liability.

B)

$4,000 current deferred tax asset and $22,000 noncurrent deferred tax liability.

C)

$10,000 noncurrent deferred tax asset and $28,000 noncurrent deferred tax

liability.

D)

$4,000

noncurrent deferred tax asset and $22,000 noncurrent deferred tax

liability.