Lehman corporation purchased a machine on january 2 2011

Question

Lehman Corporation purchased a machine on January 2, 2011, for $2,000,000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes:

2011             $400,000                        2014              $230,000

2012               640,000                        2015                230,000

2013               384,000                        2016                116,000

Assuming an income tax rate of 30% for all years, the net deferred tax liability that should be reflected on Lehman's balance sheet at December 31, 2012, should be

                  Deferred Tax Liability       

            Current                 Noncurrent

a.         $0                           $72,000

b.         $4,800                    $67,200

c.         $67,200                  $4,800

d.         $72,000                  $0