Maleny Limited Accrued $40 000 for Employees' Long Service Leave

Maleny Limited accrued $40 000 for employees' long service leave in the year ended 30 June 2021. This item will not be tax deductible until it is paid in approximately 5 years' time. Assuming the company tax rate is 30%, Maleny Limited must record the following tax effect as a balance date adjustment:

A) DR Deferred tax asset $12 000.
B) DR Deferred tax liability $12 000.
C) CR Deferred tax asset $12 000.
D) CR Deferred tax liability $12 000.