At the end of 2019, A company had a deferred tax asset of $110 million with no valuation allowance. After assessing the need for a valuation allowance, it was determined that 25% of the deferred tax asset likely would not be realized. Income taxes payable for the year were $90 million. What journal entry is needed to properly value the deferred tax asset on the balance sheet?

A: Debit Income Tax Expense $27.5 million; Credit Valuation Allowance $27.5 million

B: Debit Deferred Tax Asset $22.5 million; Credit Valuation Allowance $22.5 million

C: Debit Deferred Tax Asset $27.5 million; Credit Income Taxes Payable $27.5 million

D: Debit Income Tax Expense $22.5 million; Credit Income Taxes Payable $22.5 million