Blossom Corporation prepared the following reconciliation for its first year of operations:

Pretax financial income for 2021 $2300000

Tax exempt interest (160000)

Originating temporary difference (370000)

Taxable income $1770000

The temporary difference will reverse evenly over the next 2 years at an enacted tax rate of 30%. The enacted tax rate for 2021 is 25%. What amount should be reported in its 2021 income statement as the deferred portion of income tax expense?

a. $111000 debit

b. $132500 credit

c. $132500 debit

d. $111000 credit