Stone Co. began operations in year 3 and reported $225,000 in income before income taxes for the year. Stone's year 3 tax depreciation exceeded its book depreciation by $25,000. Stone also had nondeductible book expenses of $10,000 related to permanent differences. Stone's tax rate for year 3 was 40%, and the enacted rate for years after year 3 is 35%. In its December 31, year 3, balance sheet, what amount of deferred income tax liability should Stone report?

$8,750
$10,000
$12,250
$14,000