In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2016 income tax return when the tax rate was 30%. Data related to the reversal of the excess tax deduction for depreciation follow: There are no other temporary differences. Tow expects to report profits (rather than losses) for tax purposes for all future years. In its December 31, 2016 balance sheet, what amount should Tow report as a deferred income tax liability?

Select one:

a. $36,000

b. $39,000

c. $63,000

d. $66,000

e. $33,000