Lazer Inc. considered the probability of its recent tax position taken related to the deductibility of certain expenses of $100,000. Lazer Inc. is more than 50% certain that its tax position supporting the deductibility of the $100,000 will hold if the company is audited by the taxing authorities. However, based upon the information available, the compar believes that it will have to settle with the taxing authorities for less than 100% of the $100,000 of tax deductions taken. Using available information, Lazer Inc. created the following summary of the amounts and probabilities of estimated outcomes if Lazer Inc. settled with taxing authorities: Lazer Inc. paid taxes based upon its tax position taken: Lazer's income tax payable is $280,000, after considering the $100,000 deductible amount. Lazer's tax rate is 25%. When recording the entry to recognize income tax expense, income tax expense will increase by Select one: a. $305,000 b. $280,000 c. $286,250 d. $298,750