Easterwood Motors reported a net deferred tax liability of $45,000 and pretax financial statement income of $1,500,000 in its December 31, 2020, financial statements. Taxable income was $1,000,000 for 2021. At December 31, 2021, Easterwood had cumulative deductible differences of $350,000. Easterwoods effective income tax rate is 40%. What should Easterwood report as the deferred portion of income tax expense on its December 31, 2021, income statement?

Multiple Choice:

- 140,000

- 400,000

- 158,000

- 185,000