Ross Corp.s first year of operations was 20X2. Income for the following five years is reported below. There are no temporary or permanent differences during these five years. Rosss policy regarding the application of carryback losses is to maximize the recovery of past taxes paid.

Year	Accounting and taxable income (loss)	Tax rate
20X3	$200,000	40%
20X4	$192,000	45%
20X5	$210,000	35%
20X6	$185,000	40%
20X7	($475,000)	30%

What amount should Ross record for the income tax expense (recovery) for the year 20X7?

a) $183,500

b) $189,100

c) $194,700

d) $195,450