$$

In $2021,$ Hurry Potter Inc. decides to add a $36-$month warranty on its new product sales. Warranty costs are tax deductible when claims are settled but are recognized in the financial statement when the product is sold. In its financial statements for $2021,$ Hurry Potter Inc incurs:

Select one:

a$.$ A permanent difference

b$.$ An increase in a deferred tax asset

C$.$ An increase in a deferred tax liability

d$.$ Alass