An analyst gathered the following data about a depreciating asset: The company acquired the asset for $ 8000. The asset has a 4-year Useful life and no salvage value. The asset WILL generate $ 5000 a year. The company’s tax rate is 40%. For tax purposes, the asset can be depreciated (straight line) over two years. For financial accounting purposes the asset is depreciated (straight line) over four years. Assuming a constant tax rate, what is the deferred tax liability at the end of the second year（）
A. $1600.
B. $ 400.
C. $ 800.
