(Note: Students may want to review the material on the equity method of accounting in Chapter 16 before beginning work on this exercise.) Taft Corporation uses the equity method to account for its 25% investment in Flame, Inc., which it made on January 1, 2017. During 2017, Taft received dividends of $30,000 from Flame and recorded $180,000 as its equity in Flame's earnings. Additional information follows:

∙ All Flame's undistributed earnings will be distributed as dividends in future periods.

∙ The dividends received from Flame are eligible for the 80% dividends received deduction.

∙ Flame has no other temporary differences.

∙ Enacted income tax rates are 35% for 2017 and thereafter.

Required:

In its December 31, 2017, balance sheet, what amount should Taft report for deferred income tax liability related to its investment in Flame?