On June 30, year 1, Ank Corp. prepaid a $19,000 premium on an annual insurance policy. The premium payment was a tax deductible expense in Ank’s year 1 cash basis tax return. The accrual basis income statement will report a $9,500 insurance expense in year 1 and year 2. Ank’s income tax rate is 30% in year 1 and 25% thereafter. In Ank’s December 31, year 1 balance sheet, what amount related to the insurance should be reported as a deferred income tax liability?