Hearty, Inc. reported pre-tax income of $650,000 in the first quarter of 2023 and estimated its effective tax rate to be 34% at that time. In the second quarter, Hearty revised its effective tax rate estimate to 31% due to the anticipated use of net operating losses from previous years, and reported pre-tax income of $425,000. What amount will Hearty report as its income tax expense for the second quarter?

Select one:

a. $144,500 .

b. $131,750 .

c. $112,250 .

d. $333,250.

e. $122,500.