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-depreciation		(20,000	)
Taxable income	$	265,000

Tringali's tax rate is 40%. Assume that no estimated taxes have been paid.

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