The pretax accounting income $($or loss$)$ for Brown Corp are as follows:

$2018(45,000)$

$2019(39,000)$

$2020220,000$

Pretax accounting income $($or loss$)$ and taxable income $($loss$)$ were the same for all years involved. Assume a $25\%$ tax rate for all years. What is the impact of losses in $2018$ and $2019$ on Brown's tax matters?

Group of answer choices

Net operating loss will be carried forward as deferred tax liability to increase Income tax expense.

Net operating loss will be carried forward as deferred tax liability to decrease Income tax expense.

Net operating loss will be carried forward as deferred tax asset to decrease Income tax expense.

Net operating loss will be carried forward as deferred tax asset to increase Income tax expense.