On 15 September 2019, Balloon Overflights Ltd Made a Frankable

On 15 September 2019, Balloon Overflights Ltd made a frankable distribution of $2,000 that was franked to 40%. On 15 March 2020, the company made another distribution, this time of $2,600 that was franked to 80%. Balloon Overflights 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) $445.71 franking shortfall would apply
B) $891.43 franking shortfall would apply
C) $445.71 franking deficit tax would be payable
D) $891.43 franking deficit tax would be payable