Watson Company buys 1,000 chairs for $100 each and sells them for $180 each during 20X4. Payments will be collected evenly over this year and the next year. The entire gross profit on the chairs is recognized in the 20X4 income statement. For tax purposes, the transaction qualifies as an installment sale and is not taxed until the cash is collected. Watson has a tax rate of 30 percent. What is the amount of deferred income tax liability recognized by Watson in 20X4?

Answer options:

$0

$24,000

$12,000

$27,000

$54,000