Loran's pretax accounting income in Year $1$ is $$100,000.$ Loran had bad debt expense for financial reporting purposes of $$14,000$ in Year $1.$ In Year $1,$ Loran deducted $$4,000$ in bad debts. Loran expects the temporary difference to reverse $$3,000$ in Year $2$ and $$7,000$ in Year $3.$ The income tax rate is $40\%.$ What is the amount in the deferred tax asset account at the end of Year $2?$

Multiple choice question.

$$2,800$

$$7,000$

$$4,000$

$$1,600$