Income tax Rate

At December 31, 2012, Vermont Industries reported three temporary differences between accounting and taxable income: Vermont had $25,000 of future deductible amounts resulting from accrued warranty liabilities. Vermont offers customers a one year warranty on its products. Vermont had $55,000 in future taxable amounts associated with depreciation on property and equipment, and $15,000 in future taxable amounts associated with prepaid expenses that expire in 2013. No temporary differences existed at December 31, 2011. The income tax rate is 40%. Vermont would report the following amounts related to deferred taxes on its year end December 31, 2012 balance sheet