Fox, Co. reported taxable income of $600,000 in 2020, $800,000 in 2021, and $1,000,000 in 2022, and pre-tax book income of $300,000 in 2020, $800,000 in 2021, and $1,300,000 in 2022. The tax rate is 30% in 2020, but under tax changes already enacted into law it will increase to 35% in 2021 and 40% in 2022. Assuming any differences are temporary, originated in 2020 and reverse in 2022, which of the following is included in Fox's tax entry at the end of 2020, the 1st?

$120,000 DTA

$90,000 DTA

$90,000 DTL

$120,000 DTL

Fox Co. leased a machine under a capital (finance) lease for a period of 10?years, contracting to pay? $100,000 on signing the lease on December? 31, 2019, and ?$100,000 annually on December 31 of each of the next 9 years. The present value at December? 31, 2019 of the 10 lease payments discounted at? 10% was? $676,000. If Fox made all lease payments timely, at December? 31, 2020, Foxs total capital? (finance) lease liability ?is:

$533,600

$607,960

$518,400

$486,000