Moss, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. It will collect $250,000 of installment income in the following years when the enacted tax rates are as indicated.

The installment income is the firm’s only temporary difference.
Required:
What amount should be included as the deferred income tax liability in Moss's December 31, 2007 balance sheet?

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2007 Collection of Income Enacted Tax Rates $ 25,000 35% 2008 50,000 30 2009 75,000 30 2010 100,000 25