Question 4 (3.25 points) John Inc.'s taxable income is: Book income before tax Net permanent differences Net temporary differences Taxable income $ 2,405,600 (512,000) (189,000) $ 1,704,600 John's tax rate is 21%. Which of the below is true? A The permanent differences result in a $107,520 net increase in John's deferred tax liabilities. B The permanent differences result in a $107,520 net decrease in John's deferred tax liabilities. C The temporary differences result in a $39,690 net increase in John's deferred tax liabilities. D The temporary differences result in a $39,690 net decrease in John's deferred tax liabilities. E Both A and C are correct