Davis company began manufacturing operations on january 2, 2018. during 2018 davis reported pre-tax book income of $85,000 and had taxable income of $75,000. davis had a temporary difference relating to a prepaid asset which will be expensed as follows for book purposes: 2019 $ 7,500 2020 $ 2,500 the enacted tax rates are 30% for 2018 and 2019; and 40% for subsequent years. if no other temporary differences occurred subsequent to 2018, the deferred tax asset at the beginning of 2020 is: