At the end of its firs year

At the end of its first year of operations on December 31, 2020, the Brandon Company reported taxable income of $100,000 and had a pretax financial loss of $60,000. Differences between taxable income and pretax financial income included interest revenue received from tax-exempt municipal obligations of $40,000 and warranty expense accruals of $200,000. The warranty expenses of $90,000 are expected to be paid in 2021 and $110,000 in 2022. The enacted income tax rates for 2020, 2021, and 2022 are 20%, 25%, and 30%, respectively. The journal entry to record income tax expense (benefit) on December 31, 2020, would be O Debit Deferred Tax Asset 75,500 ; Credit Income Taxes Payable 30,000; Credit Income Tax Benefits 45,500 O Debit Deferred Tax Asset 20,000; Credit Income Taxes Payable 20,000 Debit Income Tax Expense 20,000; Credit Income Taxes Payable 20,000 Debit Deferred Tax Asset 55,500 : Credit Income Taxes Payable 20,000; Credit Income Tax Benefits 35,500