For its first year of operations Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:

Pretax Accounting Income $300,000

Permanent Difference (15,000)

285,000

Temporary Difference (20,000)

Taxable Income $265,000

Tringali's tax rate is 40%

What should Tringali report as its income tax expense for its first year of operations?

A. $120,000

B. $114,000

C. $106,000

D. $8,000

Please show work