The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):

Pretax accounting income: $ 195

Pretax accounting income included: Overweight fines (not deductible for tax purposes) 5

Depreciation expense 70

Depreciation in the tax return 110

The applicable tax rate is 25%.

There are no other temporary or permanent differences. Franklin's balance sheet at the end of its first year would report:

Multiple Choice

a A deferred tax asset of $10 million among noncurrent assets.

b A deferred tax liability of $10 million among noncurrent liabilities.

c A deferred tax liability of $10 million among current liabilities.

d A deferred tax asset of $10 million among current assets.