Southlawn Inc Southlawn's Tax Rate Is 21

Southlawn Inc.'s taxable income is computed as follows: $\begin{array}{llr} \text { Book income before tax} &\$2,405,600\\ \text {Net permanent differences } &(512,000) \\ \text { Net temporary differences} &(189,000) \\ \text { Taxable income} &\$1,704,600\end{array}$

Southlawn's tax rate is 21%. Which of the following statements is true?

A) The permanent differences caused a $107,520 net increase in Southlawn's deferred tax liabilities.
B) The permanent differences caused a $107,520 net decrease in Southlawn's deferred tax liabilities.
C) The temporary differences caused a $39,690 net increase in Southlawn's deferred tax liabilities.
D) The temporary differences caused a $39,690 net decrease in Southlawn's deferred tax liabilities.