Southlawn Inc $\quad$ $\quad$ $\quad$ $2,405,600
Net Permanent Differences $\quad$ $\quad$ (512,000 )
Net Temporary Differences

Southlawn Inc.'s taxable income is computed as follows:
Book income before tax $\quad$$\quad$$\quad$ $2,405,600
Net permanent differences $\quad$$\quad$ (512,000 )
Net temporary differences $\quad$$\quad$ (189,000 )
Taxable income $\quad$$\quad$$\quad$$\quad$$\quad$ $1,704,600
-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.