Lehman Corporation purchased a machine on January 2, 2024, for $2,000,000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes:

2024 $360,000 2027 $224,000

2025 752,000 2028 224,000

2026 347,200 2029 92,800

Assuming an income tax rate of 20% for all years, the net deferred tax liability reported on Lehman's balance sheet at December 31, 2025 is

a. $160,000.

b. $62,400.

c. $60,400.

d. $0.