he carrying value of an equipment is 7,000. For accounting purposes, depreciation of 1,000 has already been expensed in the current and prior periods. For tax purposes, depreciation of 2,000 has already been deducted in the current and prior periods and the remaining cost of 5,000 will be deductible in future periods, either as depreciation or through a deduction on disposal. Revenue generated by using the equipment is taxable and any loss on disposal will be deductible for tax purposes. The tax rate is 25%. What is the deferred tax that should be recognized in the current year in this scenario?

Deferred tax asset of 250

Deferred tax liability of 1,000

Deferred tax asset of 1,000

Deferred tax liability of 250