16 1 Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ending December 31, Year 1 (its first year of operations): Pretax financial income $160,000 Nontaxable interest received on municipal securities Long-term loss accrual in excess of deductible amount ($5,000) $10,000 Depreciation in excess of financial statement amount Taxable income ($25,000) $140,000 Zeff's tax rate for Year 1 and future years is 40%. In its December 31, Year 1, balance sheet, what should Zeff report as deferred income tax liability? A. $2,000 B. $4,000 C. $6,000 D. $8,000