Pearson Corp. provides IT consulting services. Its accounting income before taxes (AIBT) for the year ended December 31, 20X5, was $200,000. The following items were included in AIBT:

Dividend income from taxable Canadian companies totalling $25,000

100% of meals and entertainment expenses for the year of $7,000

Penalties and fines of $2,250 incurred due to Pearsons late filing of federal taxes

Depreciation expense on equipment owned by Pearson totalling $17,050 for the year

CCA claimed on equipment owned by Pearson was $14,500. Pearsons income tax rate for 20X5 was 35%. The tax rate is unchanged from previous years. What is the total income tax expense for the year?

a.

$62,038

b.

$72,013

c.

$64,155

d.

$63,263