A deferred tax asset is recognized for all deductible temporary differences. The computation of the deferred tax asset for Black Co. arising from the accrued product warranty costs of $300,000 is shown below. Year 2 Year 3 Year 4 Year 5 Total x $100,000 $50,000 $50,000 $100,000 $300,000 Tax rate 30% 30% 30% 25% Deferred tax asset $30,000 $15,000 $15,000 $25,000 $85,000 Thus, the total deferred tax asset at the end of year 1 is $85,000. Black Co., organized on January 2, year 1, had pretax accounting income of $500,000 and taxable income of $800,000 for the year ended December 31, year 1. The only temporary difference is accrued product warranty costs that are expected to be paid as follows: Year 2 $100,000 Year 3 50,000 Year 4 50,000 Year 5 100,000 Black has never had any net operating losses (book or tax) and does not expect any in the future. There were no temporary differences in prior years. The enacted income tax rates are 35% for year 1, 30% for year 2 through year 4, and 25% for year 5. In Black's December 31, year 1 balance sheet, the deferred income tax asset should be