Bens Corporation paid $12,000 on December 31, 2016, for equipment with a three-year useful

life. The equipment will be depreciated in the amount of $4,000 each year. Bens took the entire

$12,000 as an expense in its tax return in 2016. Assume this is the only timing difference between

the firms books and its tax return. Bens tax rate is 40%.

a. What amount of deferred tax liability should appear in Bens 12/31/2016 balance sheet?

b. Where in the balance sheet should the deferred tax liability appear?

c. What amount of deferred tax liability should appear in Bens 12/31/2017 balance sheet