For calendar year 2020, Dron-Apart, Corporation, Inc., [DAC] claimed pension fund expenses of $650,000 on its 2020 income tax return and had contributed a cash amount $1,050,000 to the pension fund. The 2020 balance sheet included $150,000 in accrued warranty expense that will be deducted for tax purposes when paid. Income tax rates had been enacted and known during 2020 and are 30% for 2020 and 2021, 24% for 2022 and 21% for 2023. The pension difference and warranty expense will reverse over the next three years as follows:

Year Pension Difference Warranty Expense

2021 $160,000 $ 30,000

2022 210,000 50,000

2023 30,000 70,000

$400,000 $150,000

These were DAC's only reversible (timing) differences. At December 31, 2020, DACs deferred tax asset/liability should be

Select one:

a.

$67,800

b.

$69,000

c.

$75,000

d.

$133,800

e.

none of the above amounts.