Lewis Associates. operates in an industry for which NOL carryback is not allowed, and had the following pretax income (loss) over its first three years of operations 2022 $ 1,000,000 2023 (1,800,000) 2024 1,500,000 For each year there were no deferred income taxes. The tax rate was 25% in all years. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2023. What entry to deferred tax assets would Lewis make in 2024?

Multiple options

1.Credit of $300,000

2.Credit of $375,000

3.No debit or credit to deferred tax assets

4.Credit of $75,000