In $2020,$ Expo Inc. completed installment sales of $$70,000,$ recorded in full as accounts receivable and as revenue. For tax purposes, it recognizes income when cash is received. Cash related to the installment sales is expected to be received in the following years: $2021$ of $$10,000$;$2022$ of $$30,000$;$2023$ of $$30,000.$ The tax rate for $2020-2022$ is $25\%.$ The newly enacted tax rate for $2023$ is $40\%$ all rates which were also enacted in $2020.$ Compute the value of the deferred tax liability on December $31,2020$:

A$.$ The DTL is equal to $$22,000$

B$.$ The DTL is equal to $$12,000$

C$.$ The DTL is equal to $$2,500$

D$.$ The DTL is equal to $$7,500$

B

C