Which of the options below would cause the following journal Entry to be made?

12/31/14

Income Tax Expense $500, 000 debit

Cash $475, 000 credit

Deferred Income Tax Asset $25, 000 credit

The business recognizes $475,000 of Tax Expense for the year.

The business recognizes $500,000 of Tax Expense but pays less as a temporary timing difference reverses.

The business accrues $25,000 of Tax Expense.