XYZ Corporation has one asset worth $450,000. Accumulated Depreciation to date is $190,000 and accumulated CCA is $220,000. The Corporation also recorded warranty expenses of $30,000. To date, no customers have required warranty service, so no warranty expenditures have been made. Assuming the tax rate is constant at 40%, this will result in:

Question 18Select one:

a.

A net deferred income tax liability of $12,000

b.

No temporary difference

c.

A net deferred income tax asset of $12,000

d.

A net deferred income tax asset of $30,000