In Figland Companys first year of operations (20X1), the company had pre-tax book income of $500,000 and taxable income of $800,000. Figlands only temporary difference is for accrued product warranty costs, which are expected to be paid as follows:

20X2	$	100,000
20X3	$	200,000

The enacted income tax rate is 21%. Figland believes there is a high likelihood that one-third of the tax benefit associated with the future deductible amounts will not be realized.

Required:

Compute the amount of deferred tax asset and related valuation allowance that would be reported in Figlands 20X1 tax note.

1) Deferred Tax asset

2) Valuation Allowance