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West Corp. leased a building and received the $36,000 annual rental payment on June 15, 2010. The beginning of the lease was July 1, 2010. Rental income is taxable when received. West's tax rates are 30% for 2010 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, 2010 balance sheet?
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