In Its 2007 Income Statement, Hertz Corp

In its 2007 income statement, Hertz Corp. reported depreciation of $1,110,000 and interest revenue on municipal obligations of $210,000. Hertz reported depreciation of $1,650,000 on its 2007 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next three years. Hertz's enacted income tax rates are 35% for 2007, 30% for 2008, and 25% for 2009 and 2010. What amount should be included in the deferred income tax liability in Hertz's December 31, 2007 balance sheet?

A) $144,000
B) $186,000
C) $225,000
D) $262,500