Stone Co. reported $225,000 in income before income taxes for 2017. Stone's 2017 book depreciation exceeded its tax depreciation by $25,000. Stone also accrued $10,000 of estimated warranty expenses on 12/31/17. Stone's tax rate for 2017 was 40%, and the enacted rate for years after 2017 is 35%. In its December 31, 2017 balance sheet, what amount of income tax liability should Stone report?

Select one:

a. $8,750

b. $90,000

c. $91,000

d. $104,000

e. $84,000