What Effect (If Any) Would the Unrealized Profits in Ending

What effect (if any) would the unrealized profits in ending inventory have on income tax expense for 2012?

A) They would cause a $1,600 reduction in income tax expense.
B) They would cause a $1,200 reduction in income tax expense.
C) They would cause a $1,200 increase in income tax expense.
D) They would cause a $1,600 increase in income tax expense.