KER Commenced Operations in 2013

KER commenced operations in 2013.The company had recorded an accrual for warranty in its books during the year ended December 31, 2014 amounting to $100,000.During the year 2014, customers required service from goods sold in 2013 amounting to $60,000.No similar expenditures were made during 2013.KER accrued warranty expenses totalling $100,000 for 2013 and 2014.As a result of the information above, what is the amount of deferred taxes that will appear on the 2014 statement of financial position? KER adheres to ASPE and has elected to use the Taxes Payable Method.
Assume a 20% tax rate for both years.

A) A Deferred tax asset of $8,000
B) Nil.
C) A Deferred tax liability of $8,000
D) A Deferred tax asset of $40,000