At the beginning of 2018; Elephant, Inc. had a deferred tax asset of $20,000 and a deferred tax liability of $30,000. Pre-tax financial income for 2018 was $1,500,000 and the tax rate is 40%. The following items are included in Elephant's pre-tax income:

Interest revenue from municipal bonds $120,000 never will be revenue on tax return

Warranty expense $260,000 on 2018 financial statements, $0 on the tax return. It

will be deducted on the 2019 tax return.

Sales revenue $130,000 0n 2018 financial statements, 0 on the tax return. It

will be revenue on the 2019 tax return.

Which of the following is required to adjust Elephant, Inc.'s deferred tax liability to its correct balance at December 31, 2018?

A. A CREDIT OF $82,000

B. A DEBIT OF $22,000

C. A CREDIT OF $52,000

D. A CREDIT OF $22,000