Question $5$

$20$ pts

The financial reporting carrying value of Boze Music's only depreciable asset exceeded its tax basis by $$150,000$ at December $31,2021.$ This was a result of differences between straight$-$line depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The asset was acquired earlier in the year. Boze has no other temporary differences. The enacted tax rate is $25\%$ for $2021$ and $30\%$ thereafter. Boze should report the deferred tax effect of this difference in its December $31,2021,$ balance sheet as:

An asset of $$37,500.$

An asset of $$45,000.$

A liability of $$37,500.$

A liability of $$45,000.$