The following is a summary of information presented on the financial statements of a company on

December 31, 2025.

Account20252024Net Sales Revenue$ 600,000$ 504,000Cost of Goods Sold456,000405,000Gross Profit144,00099,000Selling Expenses51,00054,000Net Income Before Income Tax Expense93,00045,000Income Tax Expense31,00021,000

Net Income: 62,000 24,000

With respect to income tax expense, a horizontal analysis reveals ________. (Round your answer to two

decimal places.)

A.an increase of 32.26%

B.an increase of 33.33%

C.an increase of 46.67%

D.an increase of 47.62%