Nestor Corp., which is not a mere holding or investment company, derives its income from retail sales. Nestor had accumulated earnings and profits of \(\$ 145,000\) on December 31, Year 1. For the year ended December 31, Year 2, it had earnings and profits of \(\$ 115,000\) and a dividendspaid deduction of \(\$ 15,000\). It had been determined that \(\$ 20,000\) of the accumulated earnings and profits for Year 1 is required for the reasonable needs of the business. How much is the allowable accumulated earnings credit on December 31, Year 2?

a. \(\$ 105,000\)

b. \(\$ 125,000\)

c. \(\$ 150,000\)

d. \(\$ 250,000\)