Plaxo Corporation has a tax rate of 35% and uses the straight-line method of depreciation for its equipment, which has a useful life of four years. Tax legislation requires the company to depreciate its equipment using the following schedule: year 1- 50%, year 2 - 30%, year 3 - 15% and year 4 - 5%. In 2014 Plaxo purchases a piece of equipment with a four year life and an original cost of $100,000. What amount will Plaxo record as a deferred tax asset or liability in 2010?

a.	Deferred tax asset of $25,000.
b.	Deferred tax liability of $25,000.
c.	Deferred tax asset of $8,750.
d.	Deferred tax liability of $8,750.

ANSWER is D but why ???