In a Nontaxable Acquisition, Assets Acquired Were Reported on the Acquired

In a nontaxable acquisition, assets acquired were reported on the acquired company's books at $1,000, but they are reported on the acquiring company's books at a fair value of $8,000. The acquiring company's tax rate is 25% and the assets have a 5-year life.
At the date of acquisition, the acquiring company reports an acquired deferred tax liability of:

A) $7,000
B) $4,000
C) $ 350
D) $1,750