This is the first year of operations for Zane Inc., a publicly accountable firm. As at December 31, 2020, it reported accounting income before taxes of $480,000. The accountant completed a reconciliation and determined that taxable income should be $590,000. All of the $110,000 difference relates to a temporary difference. The temporary difference will reverse by $45,000 in 2021, by $30,000 in 2022, and by $35,000 in 2023. The tax rates in effect for each year are: 2020 = 30%, 2021 = 35%, 2022 = 30%, 2023 = 33%. All rates have been enacted as of December 31, 2020. What amount should Zane record for deferred taxes as at December 31, 2020?

Question 23 options:

a)	$33,000 for a deferred tax asset

b)	$36,300 for a deferred tax asset

c)	$33,000 for a deferred tax liability

d)	$36,300 for a deferred tax liability