Question: Sunland Corporation purchased a machine on January 2, 2020, for $3400000. The machine has an estimated 5-year life with no salvage value. The straight-line method

Sunland Corporation purchased a machine on January 2, 2020, for $3400000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes:

2020 $680000 2023 $391000
2021 1088000 2024 391000
2022 652800 2025 197200

Assuming an income tax rate of 20% for all years, the net deferred tax liability that should be reflected on Sunland's balance sheet at December 31, 2021 be

a. $81600

b. $57800

c. $5440

d. $0

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