Reed Corporation reports Year 7 sales of $415 million, income before income taxes of $122.3 million and tax expense of $35.9 million. If sales are projected to increase by 4% next year, projected tax expense for Year 8 will be:

Select one:

a. $37.3 million

b. There is not enough information to determine the amount

c. $42.3 million

d. $40.8 million

e. $35.9 million