Bens' Corporation paid $12,000 on December 31, 2019, for equipment with a three-year useful life. The equipment will be depreciated in the amount of $4,000 each year. Bens' took the entire $12,000 as an expense in its tax return in 2019. Assume this is the only timing difference between the firm's books and its tax return. Bens' tax rate is 25%.

REQUIRED

a. What amount of deferred tax liability should appear in Bens' 12/31/2019 balance sheet?

b. Where in the balance sheet should the deferred tax liability appear?

c. What amount of deferred tax liability should appear in Bens' 12/31/2020 balance sheet?