Pharoah Co at the end of 2024, its first year of operations prepared a reconciliation between pretax financial income and taxable income as follows:

Pre tax financial income $960000

Estimated litigation expense 2600000

Installment sales (2080000)

_________

Taxable Income $1480000

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The estimated litigation expense of $2600000 will be deductible in 2026 when it is expected to be paid. Gross profit of $1040000 from the installment sales will be realized in each of the two years. The estimated liability for litigation is classified as noncurrent and the installment account receivable are classified as $1040000 current and $1040000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized at the end of 2024 is

A. $104000

B. $0

C. $1300000

D. $520000