Cavan Company prepared the following reconciliation between book income and taxable income for the current year B (Click the icon to view the reconciliation.) Cavan's effective income tax rate for Year 1 is 30%. The depreciation difference will reverse equally over the next 3 years at enacted tax rates as follows: (Click the icon to view the enacted tax rates.) In Cavan's Year 1 Income Statement, the deferred portion of its provision for income taxes should be More Info O A. $120,000 Year Tax Rate B. $80,000 C. $100,000 O D. $90,000 Year 2 30 % Data Table Year 3 25 Year 4 25 Pretax accounting $ 1,000,000 (600,000) Print Done Taxable income S 400 000 Difference Differences Interest on municipal income $ 100,000 300,000 Lower financial depreciation $ 400,000 Total Click to select your answer. Print Done