Ray Co. began operations in the current year and reported $225,000 in income before income taxes for the year. Rays current-year tax deprecation exceeded its book depreciation by $25,000. Ray also had non-deductible book expenses of $10,000 related to permanent differences. Rays tax rate for the current year was 40%, and 35% for the following years. In its current year balance sheet, what amount of deferred income tax liability should Ray report?

$8,750

$10,000

$12,250

$14,000