At the end of the reporting period Bonaparte Inc. had the following assets in its statement of financial position:

A machine that had originally cost 150,000 with related accumulated depreciation of 50,000. Accumulated tax depreciation was 100,000.

Trade receivables with a carrying amount of 60,000. This amount is net of an allowance for doubtful receivables of 40,000. The related sales revenue has already been included in taxable profit. Doubtful debts are not deductible for tax purposes until the debt is written off.

The tax rate is 30%

Applying the balance sheet liability method of tax effect accounting, these items will give rise to:

a. A net deferred tax asset of 3,000

b. A net deferred tax liability of 3,000

c. A net deferred tax asset of 27,000

d. A net deferred tax liability of 27,000