In 2021, Dunder Mifflin's warranty deduction for tax purposes exceeded its warranty expense for book purposes by $654. Its pretax financial income in 2021 was $42800, and its tax rate was 27%. What amount of deferred tax liability should be reported on Dunder Mifflin's 2021 balance sheet? Assume no prior deferred tax balance. Choose the closest answer (round to the nearest two decimal places).

a.

$654.00

b.

$11556.00

c.

$176.58

d.

None; Dunder Mifflin reports a deferred tax asset on its 2021 balance sheet.