West Corp. leased a building and received the $36,000 annual
rental payment on June 15, year 1. The beginning of the
lease was July 1, year 1. Rental income is taxable when received.
West’s tax rates are 30% for year 1 and 40% thereafter. West had
no other permanent or temporary differences. West determined
that no valuation allowance was needed. What amount of deferred
tax asset should West report in its December 31, year 1