Wrest Co., organized on January 2, 2014, had pretax book income of $640,000

Taxable income is $2,080,000 for the year ended December 31, 2014.

The only temporary difference is accrued product warranty costs which are expected to be paid as follows:

2015 480,000

2016 240,000

2017 240,000

2018 480,000

The enacted income tax rates are 35% for 2014, 30% for 2015 through 2017, and 25% for 2018.

If Wrest expects taxable income in future years, the deferred tax asset in Wrest's December 31, 2014 balance sheet should be