Cross Company reported the following results for the year ended December 31, 2021, its first year of operations:

2021

Income (per books before income taxes) $ 2,000,000

Taxable income 3,200,000

The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. What should Cross record as a net deferred tax asset or liability for the year ended December 31, 2021, assuming that the enacted tax rate is 20%?

Question 14 options:

a)	$240,000 deferred tax asset

b)	$240,000 deferred tax liability

c)	$1,200,000 deferred tax asset

d)	$1,200,000 deferred tax liability