The following information relates to Franklin Freightways for its first year of operations

(data in millions of dollars):

Pretax accounting income: $ 200

Pretax accounting income included:

Overweight fines (not deductible for tax purposes) 5

Depreciation expense 70

Depreciation in the tax return using MACRS: 110

The applicable tax rate is 40%. There are no other temporary or permanent differences.

Franklin's balance sheet at the end of its first year would report:

A) A deferred tax asset of $16 million among noncurrent assets.

B) A deferred tax liability of $16 million among noncurrent liabilities.

C) A deferred tax asset of $16 million among current assets.

D) A deferred tax liability of $16 million among current liabilities.