In 2017, Savoury Ltd. accrued, for book purposes, estimated losses on disposal of unused plant facilities of $750,000. The facilities were sold in March 2018 and a $750,000 loss was recognized for tax purposes. Also in 2017, Savoury paid $50,000 in premiums for a two-year life insurance policy in which the company was the beneficiary. Assuming that the enacted tax rate is 25% in both 2017 and 2018, and that Savoury$390,000 in income taxes in 2017, the amount reported as the deferred tax asset or liability on Savoury's statement of financial position at December 31, 2017, should be a

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The deferred tax asset arises from the temporary difference due to the loss on disposal of plant facilities, which is recognized for book purposes in 2017 but for tax purposes in 2018. The deferred tax asset is calculated as $750,000 * 25% = $187,500.