At the end of 2021, a company has a deferred tax asset with a balance of $420,000. The company has a valuation account related to the deferred tax asset, and the valuation account has a beginning balance of $39,000. If at the end of 2021, it is more likely than not $21,000 of DTA will not be realized. At the year end, the company will (enter the number representing the correct answer):

1. Debit Income Tax Expense by $18,000.
2. Debit Income Tax Expense by $60,000.
3. Credit Income Tax Expense by $60,000.
4. Credit Income Tax Expense by $18,000.