Elkhorn Corporation Has Pretax Accounting Income of $636,000 and Taxable

Elkhorn Corporation has pretax accounting income of $636,000 and taxable income of $748,000. The company's income tax rate is 35%. The entry to record the income tax includes a:

A) debit to Income Tax Expense for $261,800.
B) debit to Deferred Tax Asset for $39,200.
C) credit to Income Tax Payable for $222,600.
D) credit to Deferred Tax Liability for $39,200.