(Chapter 19) At the beginning of 2020, Fire Pit Co. purchased an asset for $875,000 with an estimated useful life of 5 years and an estimated salvage value of $75,000. For financial reporting purposes, the asset is being depreciated using the straight-line method; for tax purposes, the double declining balance method is being used. The reported 2020 depreciation expense under those two methods are as follows: Financial Income Straight line method $160,000 Taxable income Double declining balance method $350,000 Fire Pit's tax rate is 40% for 2020 and all future years. At the end of 2020, which of the following deferred tax accounts and balances is reported on Fire Pit's balance sheet? Deferred tax asset $ 76,000 Deferred tax liability $140,000 Deferred tax asset $140,000 Deferred tax liability $76,000