Taylor Company began manufacturing operations on January 2, 2015. During 2015 Taylor earned pre-tax book

income of $150,000 and had taxable income of $200,000. Taylor had a temporary difference relating

to accrued product warranty costs that are expected to be paid as follows:

2016	$ 30,000
2017	$ 15,000
2018	$ 5,000

The enacted tax rates are 30% for 2015 and 2016; and 40% for 2017 and 2018. The deferred tax asset at the end of 2015 is?

Please show work