At the end of 2021, a company has a deferred tax asset with a balance of $332,000. The company has a valuation account related to the deferred tax asset, and the valuation account has a beginning balance of $23,000. If at the end of 2021, it is more likely than not that none of DTA will be realized. At the year end, the company will (enter the number representing the correct answer):

1. Debit the Allowance account by $23,000.

2. Credit Deferred Tax Asset by $309,000.

3. Debit Income Tax Expense by $309,000.

4. Debit Income Tax Expense by $23,000.