Panaca Company began operations in 20X1 and had operating losses totaling $1,000,000 in its first three years of operations: 20X1, 20X2, and 20X3. Assume an enacted tax rate of 25% for all years. Panaca has no temporary book-tax differences. As of December 31, 20X3, Panaca has recognized a $250,000 deferred tax asset with respect to these net operating loss carryforwards. On December 31, 20X3, the accountants for Panaca determine that it is more likely than not that future taxable income will be only $600,000. As a result, Panaca needs to recognize a valuation allowance related to the $250,000 deferred tax asset. Which ONE of the following should be included in Panaca's journal entry to record the valuation allowance on December 31, 20X3? CREDIT Valuation Allowance for $100,000 CREDIT Deferred Tax Liability for $100,000 DEBIT Valuation Allowance for $100,000 CREDIT Income Tax Expense for $100,000