Gleim Inc Has a Deductible Temporary Difference of $100,000 at the the End

Gleim Inc. has a deductible temporary difference of $100,000 at the end of its first year of operations. Its tax rate is 40%. Income taxes payable are $90,000. Gleim properly recorded a deferred tax asset. Later, after careful review of all available evidence, it is determined that it is more likely than not that $15,000 of the deferred tax asset will not be realized. What entry should Gleim make to record the reduction in asset value?

A)
$\begin{array}{llr} \text { Income Tax Payable} &15,000\\ \text {Deferred Tax Asset } &&15,000\\\end{array}$

B)
$\begin{array}{llr} \text { Income Tax Payable} &15,000\\ \text { Income Tax Expense } &&15,000\\\end{array}$

C) $\begin{array}{llr} \text { Allowance to Reduce Deferred Tax Asset to} &\\ \text { Expected Realizable Value} &15,000\\ \text { Income Tax Expense } &&15,000\end{array}$

D) $\begin{array}{llr} \text { Income Tax Expense} &15,000\\ \text { Allowance to Reduce Deferred Tax Asset to} &\\ \text { Expected Realizable Value } &&15,000\end{array}$