1. Rocta Incorporated has recently issued employee stock options with a fair value of $400,000. The service period on the options is two years. Rocta has a 30% tax rate. The net income for the company is $900,000. Based on this information, at the end of the year the options were issued, what is the deferred tax asset associated with the compensation expense resulting from the stock options?

A :$135,000

B :$60,000

C :$120,000

D :$150,000