Caleb Corporation has three financial statement elements for which the December 31, year 1 book value is different than the December 31, year 1 tax basis.

		Book value		Tax basis		Difference
Equipment		$200,000		$120,000		$80,000
Prepaid officers insurance policy		75,000		0		75,000
Warranty liability		50,000		0		50,000

As a result of these differences, future taxable amounts are

A.$50,000

B. $80,000

C. $205,000

D. $155,000

Please show work