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Cross Company reported the following results for the year ended December 31,2014, its first year...

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Accounting

Cross Company reported the following results for the year ended December 31,2014, its first year of operations:
Income (per books before income taxes)
Taxable income
$20141,500,000
The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2015. What should Cross record as a net deferred tax asset or liability for the year ended December 31,2014, assuming that the enacted tax rates in effect are 40% in 2014 and 35% in 2015?
$360,000 deferred tax liability
$315,000 deferred tax asset
$360,000 deferred tax asset
$315,000 deferred tax liability
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