At the beginning of 2018; Sunland, Inc. had a deferred tax asset of $23000 and a deferred tax liability of $33000. Pre-tax accounting income for 2018 was $1560000 and the enacted tax rate is 30%. The following items are included in Sunlands pre-tax income:

Interest income from municipal bonds $126000

Accrued warranty costs, estimated to be paid in 2019 $266000

Operating loss carryforward $196000 Installment sales profit, will be taxed in 2019 $136000

Prepaid rent expense, will be used in 2019 $63000

Which of the following is required to adjust Sunland, Inc.s deferred tax asset to its correct balance at December 31, 2018?

A debit of $56800

A debit of $49900

A credit of $79800

A credit of $49900