In Year 1, Lobo Corp. reported for financial-statement purposes the following revenue and expenses that were not included in taxable income:

Premiums on officers' life insurance under which the corporation is the beneficiary		$5,000
Interest revenue on qualified-state or municipal bonds		$10,000
Estimated future warranty costs to be paid in Year 2 and Year 3		$60,000

Lobo's enacted tax rate for the current and future years is 30%. Lobo has paid income taxes of $170,000 for the three-year period ended December 31, Year 1. There were no temporary differences in prior years. The deferred tax benefit to be applied against current income tax expense is

$21,000

$19,500

$18,000

$22,500