For financial statement reporting, Lexington Corporation recognizes royalty income according to GAAP. However, royalties are taxed when collected. At December 31, 20X0, deferred royalty income of $400,000 was included in Lexington’s balance sheet. All of these royalties had been collected in 20X0. During 20X1, royalties of $600,000 were collected. Deferred royalty income in Lexington’s December 31, 20X1, balance sheet amounted to $350,000. Assume that the income tax rate was 21%.

Required:

What amount should be reported as the deferred portion of the provision for income taxes in Lexington’s income statement for the year ended December 31, 20X1?