Bearings Manufacturing Company Inc. purchased a new machine on January 1. 2017 for $100,000. The company uses the straight-line depreciation method with an estimated equipment life of 5 years and a zero salvage value for financial statement purposes, and uses the 3-year Modified Accelerated Cost Recovery System (MACRS) with an estimated equipment life of 3 years for income tax reporting purposes. Bearings is subject to a 35% marginal income tax rate. Assume that the deferred tax liability at the beginning of the year is zero and that Beanngs has a positive earnings tax position. The MACRS depreciation rates for 3-year equipment are shown below. What is the deferred tax liability at December 31. 2017 (rounded to the nearest whole dollar)? $7,000 $4, 666 $33, 330 $11, 667