Sand engaged in operations at the start of 20X1 and reported $550,000 in pre-tax book income for the year. Tax depreciation for Sand exceeded book depreciation by $50,000. The tax rate for 20X1 was 25%, and Congress had enacted a tax rate of 21% for the years after 20X1.

What is the deferred tax liability for Sand at December 31, 20X1?

$10,500

$42,000

$15,750

$21,000