On December 20, year 3, Sussex Corporation received a condemnation award of $300,000 as compensation for the forced sale of a company plant with a book value of $200,000. In its income tax return for the year ended December 31, year 3, Sussex elected to replace the condemned plant within the allowed replacement period. Accordingly, the $100,000 gain was not reported as taxable income for year 3. Sussex has an enacted income tax rate of 30% for the year3. In its December 31, year 3 balance sheet, what amount should Sussex report as a deferred tax liability on the above gain?

$70,000

$30,000

$20,000

$0