In 2020, the Puerto Rios Company received insurance proceeds of $300,000 payable upon the death of its previous top executive officer. For financial reporting purposes, Puerto Rios included the $300,000 in pretax accounting income. The life insurance proceeds are exempt from income taxes. Assuming an income tax rate of 35%, what should Puerto Rios report for this event as deferred income taxes in the 2020 income statement?

A. $105,000 deferred tax asset

B. $105,000 deferred tax liability

C. $0

D. $195,000 deferred tax liability