Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2015, for a total of $3,200. In 2016, Tungsten receives a refund of $1,000 in Federal income taxes. How does the refund impact Tungstens E & P in 2016?

a. Increase by $3,200 in 2016.

b. Increase by $1,000 in 2016.

c. Decrease by $3,200 in 2016.

d. Decrease by $1,000 in 2016.

e. None of the above.