For the year ended December $31,$ Year $1,$ Health Company reported a $$240,000$

warranty expense in its income statement. The expense was based on actual

warranty costs of $$48,000$ in Year $1$ and expected warranty costs of $$58,000$ in

Year $2,$ $$60,000$ in Year $3,$ and $$74,000$ in Year $4.$ Tax rates in effect are $15\%$ for

Year $1$ and Year $2,$ and $20\%$ for Year $3$ and beyond. At December $31,$ Year $1,$ this

difference will yield a

$$36,000$ Deferred Tax Asset

$$28,800$ Deferred Tax Liability

$$42,700$ Deferred Tax Liability

$$28,800$ Deferred Tax Asset

$$36,000$ Deferred Tax Liability

$$35,500$ Deferred Tax Asset

$$35,500$ Deferred Tax Liability

$$42,700$ Deferred Tax Asset