Emerald Pools Corp. recognizes $100,000 of profit on its 2021 GAAP financial statements. The company recognizes $80,000 of profit for tax purposes. The temporary difference is due to $20,000 of profit from an installment sale that took place during 2021, all of which was recorded as profit under GAAP, and none of which was recorded as profit for tax purposes. For tax purposes, all $20,000 of the installment sale is expected to be recorded as taxable profit in 2022 when the average tax rate is expected to equal 15%.

Which of the following will be recorded in 2022 (year two) with respect to the company's taxes?

Group of answer choices

Debit: Deferred Tax Liability for $3,000

Credit: Deferred Tax Liability for $3,000

Debit: Deferred Tax Asset for $3,000

Credit: Deferred Tax Asset for $3,000