Pharoah 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	$1320000
Estimated litigation expense	3200000
Installment sales	(2560000)
Taxable income	$1960000

The estimated litigation expense of $3200000 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 $1280000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1280000 current and $1280000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized is

$128000 current.

$640000 noncurrent.

$0.

$128000 noncurrent.