For its first year of operations Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:
Pretax accounting income $300000 minus permanent difference 15000 equals 285000 minus temporaty difference 20000 equals taxable income $265000
Tringali's tax rate is 40%.
What should Tringali report as its deferred income tax liability as of the end of its first year of operations?
a) $35,000.
b) $20,000.
c) $14,000.
d) $ 8,000.