West Corporation leased a building and received the $36,000 annual rental payment on June 15, 2008. The beginning of the lease was July 1, 2008. Rental income is taxable when received. Its tax rates are 30% for 2008 and 40% thereafter. West had no other permanent or temporary differences.
It determined that no valuation allowance was needed.
Required:
What amount of deferred tax asset should West report in its December 31, 2008 balance sheet?