Taft Corporation uses the equity method to account for its 25% investment in Flame, Inc. During 2008, Taft received dividends of \($30,000\) from Flame and recorded \($180,000\) as its equity in Flame’ earnings. Additional information follows:
• All Flame’s undistributed earnings will be distributed as dividends in future periods.
• The dividends received from Flame are eligible for the 80% dividends received deduction.
• Flame has no other temporary differences.
• Enacted income tax rates are 30% for 2008 and thereafter.
Required:
In its December 31, 2008 balance sheet, what amount should Taft report for deferred income tax liability?