On 15 September 2019, Balloon Flights Ltd Made a Frankable

On 15 September 2019, Balloon Flights Ltd made a frankable distribution of $2,200 that was franked to 80%. On 15 March 2020, the company made another distribution, this time of $2,000 that was franked to only 40%. Balloon Flights Ltd is not a base rate entity and has a tax rate of 30%. Does the company have any issue with the change in the franking percentages used?

A) This is under-franking and would result in a franking shortfall of $342.86
B) This is under-franking but there would not be any franking shortfall
C) This is over-franking and there would be no penalty
D) This is over-franking and would result in the payment of franking deficit tax