Use the Following Information to Answer Questions Below

Multiple Choice

Use the following information to answer questions below
Caroline Company began operations in 2015. The company reported $128,000 of depreciation expense on its income statement in 2015 and $84,000 in 2016. On its tax returns, the company deducted $192,000 for depreciation in 2015 and $112,000 in 2016. The 2016 tax return shows a tax obligation (liability) of $132,000 based on a 40% tax rate.
-How much deferred tax liability will Caroline report at the end of 2015?

A) $32,000
B) $25,600
C) $12,800
D) $51,200