Cross Company reported the following results for the year ended December 31, Year 13, its first year of operations:

Income (per books before income taxes)	$750,000
Taxable Income	1,200,000

The difference between book income and taxable income is due to a temporary difference which will reverse in Year 14. What should Cross record as a net deferred tax asset or liability for the year ended December 31, Year 13, assuming that the enacted tax rates in effect are 35% for Year 13 and 40% for Year 14?

	A.	$157,500 deferred tax liability.
	B.	$157,500 deferred tax asset.
	C.	$180,000 deferred tax liability.
	D.	$180,000 deferred tax asset. lplease show work