High Noon Company (HNC) entered into a lease for a photocopier in the year. At the end of the year, the lease liability had a balance of $17,000, and the right-of-use asset had a carrying cost of $18,500. Which of the following describes the effect the lease has on HNC's deferred taxes asset or liability? 

A. The lease liability has no impact on the deferred tax asset or liability. 

B. The right-of-use asset results in a deductible temporary difference. 

C. The lease liability results in a taxable temporary difference. 

D. The right-of-use asset results in a taxable temporary difference.