On December 31, Year 1, Big Bear Corporation reports book income of $ 900,000 and a taxable income of $ 1,250,000. The difference arose from temporary differences that would reverse in the following years: Year 2 $90,000 Year 3 $80,000 Year 4 $82,000 Year 5 $50,000 Year 6 $48,000

Assuming a tax rate of 40% for Year 1 Year 4 and a rate of 45% for Year 5 Year 6, what should Big Bear report on its balance sheet on December 31, Year 1? A. deferred tax asset of $140,000 B. deferred tax asset of $144,900 C. deferred tax liability of $144,900 D. deferred tax liability of $140,000

I understand that (90,000 + 80,000 + 82,000) = 252,000 * 40% = 100,800 and (50,000 + 48,000) = 98,000 * 44,100.

100,800 + 44,100 = 144,900. My question is how do I diferentiate if it its a DTA or a DTL?