Watkin Co., organized on January 2, 2021, had pretax accounting income of $960,000 and taxable income of $3,120,000 for the year ended December 31, 2021. The only temporary difference is accrued product warranty costs which are expected to be paid as follows:

2022 $720,000

2023 360,000

2024 360,000

2025 720,000

The enacted income tax rates are 25% for 2021, 20% for 2022 through 2024, and 15% for 2025. If Watkin expects taxable income in future years, the deferred tax asset in Watkin's December 31, 2021 balance sheet should be