In its December 31, 2018, balance sheet, Steve Co. had income taxes payable of 24,000 and a current deferred tax asset of $5,000 before determining the need for a valuation account. Steve had reported a current deferred tax asset of $8,000 at December 31, 2017. No estimated tax payments were made during 2018. At December 31, 2018, Steve determined that it was more likely than not that 20% of the deferred tax asset would not be realized. In its 2018 income statement, what amount should Steve report as total income tax expense?

a. $28,000 b. $27,000 c. $26,000 d. $25,000