Stadler Corporation’s federal income tax rate is 34 percent. It reports $100,000 depreciation expense on its financial statements and deducts $140,000 depreciation expense on its tax return. How should Stadler account for the difference between its federal tax liability and its book tax expense on its financial statements?

a. $13,600 deferred tax liability

b. $13,600 deferred tax asset

c. $40,000 deferred tax liability

d. $40,000 deferred tax asset