Early this year, ZeZe, Incorporated paid a $52,000 legal fee in connection with a dispute over ZeZes title to investment land. ZeZes auditors required the corporation to expense the payment on this years financial statements. According to ZeZes tax adviser, the payment is a nondeductible capital expenditure. ZeZes tax rate is 21 percent.

Required: Compute the deferred tax asset or a deferred tax liability (identify which) resulting from this difference in accounting treatment. When will the temporary difference reverse?