A company has a domestic subsidiary that is treated as a partnership for tax purposes. The company owns $80\%$ of this partnership. The GAAP basis in the partnership is $10,000$ while the tax basis in the partnership is $8,000.$ The basis difference relates to goodwill, which the company has a BIG of $500$ that will be allocated to it via Section $704($c$).$

Assuming the Outside Basis Approach is used and the tax rate is $25\%,$ what is the DTA or DTL that should be recorded?

Group of answer choices

DTA of $1,700$

DTL of $1,700$

DTA of $500$

$0$

DTL of $500$