Royal Manufacturers acquires an asset for $$280,000.$ The asset has a useful life of $4$ years and an estimated salvage value of $$20,000.$ It is expected to generate $$150,000$ of cash flow each year over its useful life. Royal will depreciate the asset using the double$$declining balance method for tax purposes, but for financial reporting purposes, it will depreciate the asset on a straight$$line basis. The company$$s tax rate is $40\%.$

In Year $4,$ the company will most likely report a:

Group of answer choices

Deferred tax asset of $$50,000.$

Deferred tax liability of $$65,000.$

Deferred tax liability of $$0.$