2. At the end of the current year (year 4), DIG company's only temporary differences are deductible temporary differences in the amount of $4,000. The company determines that it is more likely than not that future taxable income will not be sufficient to realize a tax benefit of $1,000 of the $4,000. Pre-tax financial income, taxable income, and taxes paid for each of the years 1-4 are all positive, but relatively negligible, amounts. The statutory tax rate is 30% for all years. What is the amount of valuation allowance, if any, to be recorded by the company at the end of year 4?

A. $300

B. $1,000

C. $1,200

D. $0