Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ended December 31, Year 1, its first year of operations:

Pretax financial income $160,000
Nontaxable interest received on municipal securities (5,000)
Long-term loss accrual in excess of deductible amount 10,000
Depreciation in excess of financial statement amount (25,000)
Taxable income $140,000
Zeff's tax rate for Year 1 is 40%.

In its December 31, Year 1, balance sheet, what should Zeff report as deferred income tax liability?

a) $2,000

b) $4,000

c) $6,000

d) $8,000