Schaeffer Products, Inc

Schaeffer Products, Inc., reported an excess of warranty expense over warranty deductions of $72,000 for the year ended December 31, 2011. This temporary difference will reverse in equal amounts over the years 2012 to 2014. The enacted tax rates are as follows:

The reporting for this temporary difference at December 31, 2011, would be a

A) deferred tax liability of $28,800.
B) deferred tax asset of $28,800.
C) current deferred tax liability of $8,400 and a noncurrent deferred tax liability of $13,200.
D) current deferred tax asset of $8,400 and a noncurrent deferred tax asset of $13,200.