In 2017, the first year of operations, Parasitical Corporation reported a pretax accounting income of $265 million for the current year. Bad debts expense booked (and included within the pretax accounting income number) is $25 million. Parasitical wrote off $5 million of bad debts in 2017 and expects to write off bad debts of $7 million in 2018, $5 million in 2019, and $8 million in 2020. The current year's tax rate of 35% will be reduced under the current law to 30% next year and 25% for all subsequent years. Assuming no other temporary or permanent differences, Parasitical will report a deferred tax liability of:

a) $6 million

b) $7 million.

c) $6.5 million

d) $5.35 million.