Tara Corporation uses the equity method of accounting for its 40% investment in Flax’s common stock. During 2008, Flax reported earnings of \($750,000\) and paid dividends of \($250,000\). Assume that:
• All undistributed earnings of Flax will be distributed as dividends in future periods.
• The dividends received from Flax are eligible for the 80% dividends received deduction.
• No other temporary differences exist.
• ‘Tara's 2008 income tax rate is 30%.
• Enacted income tax rates after 2008 are 25%.
Required:
In Tara’s December 31, 2008 balance sheet, what would be the increase in the deferred income tax liability from the preceding transactions?