Danna Spice Inc. has the following Deferred tax assets and liabilities.

Deferred Tax Assets		Deferred Tax Liabilities
Allowance for bad debts	$72,450	Depreciation	(2,100,000)
Reserve for warranties	90,300
Net Operating loss carry-forward	5,040
Deferred Compensation	252,000
Contributions carry-forward	0
Capital Loss carry-forward	0
Valuation allowance for deferred tax assets	0
Deferred tax assets, net of valuation allowance	$419,790	Total Deferred Tax Liabilites	$(2,100,000)

What should Danna Spice Inc. recognize on the balance for these deferred tax assets and liabilities?

a. Both the Net Deferred tax asset of $419,790 and the deferred tax liability would be reported in the respective asset and liability sections of the balance sheet.

b. Only the Net Deferred tax asset would be reported as $419,790.

c. Only the net of the deferred tax assets and liabilities would be reported as a deferred tax liability of $1,680,210.

d. Only the Net Deferred tax liability would be reported as $2,100,000.