Honest Sam's Corporation has pretax accounting income of $395,000 and taxable income of $375,000. The company's income tax rate is 35%. The entry to record the income tax includes a:

A) debit to Deferred Tax Asset for $7,000.

B) credit to Deferred Tax Liability for $138,250.

C) debit to Deferred Tax Asset for $138,250.

D) credit to Deferred Tax Liability for $7,000.