Provo, Inc. has an estimated annual tax rate of 35% in the first quarter of 2021. Pretax income for the first quarter was $300,000. At the end of the second quarter of 2021, Provo expects the annual tax rate to be 32% because of anticipated tax credits. Pretax income for the second quarter was $350,000. Assume no items in either quarter requiring the net-of-tax presentation.

How much income tax expense is recognized in the second quarter of 2021?

Multiple Choice

a.)$103,000.

b.)$104,000.

c.)$112,000.

d.)$122,500.

e.)$208,000.