In Figland Company’s first year of operations (2008), the company had pre-tax book income of \($500,000\) and taxable income of \($800,000\) at the December year-end. Figland expected to maintain this level of taxable income in future years. Figland’s only temporary difference is for accrued product warranty costs, which are expected to be paid as follows:

The enacted income tax rate for these years is 30%. Figland believes there is a high likelihood that one-third of the tax benefit associated with this future deductible amount will not be realized.
Required:
Compute the amount of deferred tax asset and related valuation allowance that would be reported in Figland’s 2008 tax footnote.

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2009 2010 $100,000 $200,000