Lavender Co. began operations in 2018 and reported $400,000 in income before income taxes for the year. Lavenders 2018 tax depreciation exceeded its book depreciation by $80,000. Lavender also had nondeductible book expenses of $20,000 related to permanent differences. Lavenders tax rate for 2018 was 25%, and the enacted rate for years after 2018 is 30%. In its December 31, 2018, balance sheet, what amount of deferred income tax liability should Lavender report?

a. $20,000 b. $24,000 c. $25,000 d. $30,000