At the end of year 6, the tax effects of temporary differences reported in Turtle company's year-end financial statements were as follows:

Deferred Tax Assets(Liabilities)Accelerated tax depreciation ($120,000)Warranty expense 80,000NOL carryforward200,000Total$ 160,000

A valuation allowance was not considered necessary. Turtle anticipates that $40,000 of the deferred tax liability will reverse in year 7, that actual warranty costs will be incurred evenly in year 8 and year 9, and that the NOL carryforward will be used in year 7. On Turtle's December 31, year 6 balance sheet, what amount should be reported as a deferred tax asset under U.S. GAAP?

a.

$240,000

b.

$280,000

c.

$160,000

d.

$200,000