Rubarb farms depreciates its assets at a faster rate for tax purposes than to GAAP financial statement purposes, and invest heavily in municipal bonds. in its first year of operation, the year ended Dec 31, year 1. Rubarb pretax financial income reconcile to its tax return income as follows:

pretax financial income $ 200,000
excess depreciation per tax return ( $ 40,000)
Municipal bond interest ($ 10,000)
Taxable income $ 150,000

if the enacted tax rate for the current and future periods were 25%, Rubarb would record a deffered tax liability of?

A. $2,500

B. $10,000

C. $ 12,500

D. $ 37,500