Earl Company Uses the Accrual Method of Accounting

Earl Company uses the accrual method of accounting. Here is a reconciliation of Earl's allowance for bad debts for the current year.
Beginning allowance for bad debts $ 950,000
Actual write-offs of accounts receivable during the year (899,600 )
Addition to allowance 845,000
Ending allowance for bad debts $ 895,400
Because of the difference between the GAAP rules and the tax rules for accounting for bad debts, Earl Company has a:

A)  $54,600 permanent excess of book income over taxable income.
B)  $54,600 permanent excess of taxable income over book income.
C)  $54,600 temporary excess of taxable income over book income.
D)  $54,600 temporary excess of book income over taxable income.