Carla Vista, Inc. had pre-tax accounting income of $3400000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions:

Received rent from Jane, Co. for 2019 $103000

Municipal bond income $127000

Depreciation for tax purposes in excess of book depreciation $67000

Installment sales profit to be taxed in 2019 $169000

At the end of 2018, which of the following deferred tax accounts and balances exist at December 31, 2018?

Account Balance

A. Deferred tax asset $41200

B. Deferred tax liability $41200

C.Deferred tax asset $68000

D.Deferred tax liability $68000