In 2010, Rand, Inc. reported for financial statement purposes the following items, which were not included in taxable income:

Installment gain to be collected equally in 2011 through 2013 $1,500,000 Estimated future warranty costs to be paid equally in 2011 through 2013 2,100,000 There were no temporary differences in prior years.

Rand’s enacted tax rates are 30% for 2010 and 25% for 2011 through 2013.

In Rand’s December 31, 2010 balance sheet, what amounts of the deferred tax asset should be classified as current and noncurrent?

Current Noncurrent

a. $60,000 $100,000

b. $60,000 $120,000

c. $50,000 $100,000

d. $50,000 $120,000