At the End of Its First Year of Operations on December

At the end of its first year of operations on December 31, 2010, the Belton Company reported taxable income of $100, 000 and had a pretax financial loss of $60, 000.Differences between taxable income and pretax financial income included interest revenue received from municipal obligations of $20, 000 and warranty expense accruals of $180, 000.Warranty expenses of $90, 000 are expected to be paid in 2011 and $110, 000 in 2012.The enacted income tax rates for 2010, 2011, and 2012 are 30%, 35%, and 40%, respectively.The journal entry to record income tax expense on December 31, 2010, would be

A)
$\begin{array} { l r } \text { Deferred Tax Asset } & 75,500 \\\text { Income Taxes Payable } & 30,000 \\\text { Income Tax Benefits from } & \\\text { Operating Loss Carryforward } & 45,500\end{array}$
B)
$\begin{array} { l r } \text { Deferred Tax Asset } & 30,000 \\\text { Income Taxes Payable } && 30,000\end{array}$
C)
$\begin{array} { c r } \text { Income Tax Expense } & 30,000 \\\text { Income Taxes Payable } & 30,000\end{array}$
D)
$\begin{array} { l r } \text { Deferred Tax Asset } & 105,500 \\\text { Income Taxes Payable } & 30,000 \\\text { Income Tax Benefit from } & \\\text { Operating Loss Carryforward } & 75,500\end{array}$