After issuing employee stock options, Treaton Inc. has provided the following information:

Net income: $800,000

Fair value of options: $350,000

Service period: Two years

Tax rate: 40%

Based on this information, at the end of the first year, what is the deferred tax asset associated with the compensation expense resulting from the stock options?

A : $160,000

B :$320,000

C : $140,000

D : $70,000