Rodd Co. reports a taxable and pretax financial loss of $400,000 for 2021. Rodd's taxable and pretax

financial income and tax rates for the last two years were:

2019

$400.000

30%

2020

400,000

35%

2021

($400,000)

40%

The amount that Rodd should report on their balance sheet at the end of 2021 if they carry their loss

forward is: (You can assume a 40% future tax rate.)

a. 160.000 deferred tax asset

b. $160,000 deferred tax liability

c. $160.000 Income Tax Receivable

d. $160.000 Income lax Pavable

e. None of these are correct