As of December 31, 2016, the Williamsburg Company Reported a Deferred

As of December 31, 2016, the Williamsburg Company reported a deferred tax asset of $60,000 related to accrued, unpaid warranty costs. However, since profits have been declining, Williamsburg decides that it is more likely than not that $24,000 of the deferred tax asset will not be realized. The entry to record the valuation allowance would include a

A) debit to Income Tax Expense for $60,000.
B) credit to Income Tax Expense for $24,000.
C) debit to Allowance to Reduce Deferred Tax Asset to Realizable Value for $24,000.
D) credit to Allowance to Reduce Deferred Tax Asset to Realizable Value for $24,000.