In 2014, the Puerto Rios Company Received Insurance Proceeds of $300,000

In 2014, the Puerto Rios Company received insurance proceeds of $300,000 payable upon the death of its previous top executive officer. For financial reporting purposes, Puerto Rios included the $300,000 in pretax accounting income. The life insurance proceeds are exempt from income taxes. Assuming an income tax rate of 35%, what should be reported as deferred income taxes in the 2014 income statement of Puerto Rios for this event?

A) $ 0
B) $105,000 deferred tax asset
C) $105,000 deferred tax liability
D) $195,000 deferred tax liability