Cullumber Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:

Pretax financial income	$ 1230000
Estimated litigation expense	3050000
Installment sales	( 2440000)
Taxable income	$ 1840000

The estimated litigation expense of $ 3050000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $ 1220000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $ 1220000 current and $ 1220000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized is

A) $ 610000 noncurrent.

B) $ 122000 current.

C) $ 0.

D) $ 122000 noncurrent.