Provo, Inc

Provo, Inc. has an estimated annual tax rate of 35 percent in the first quarter of 2011. Pretax income for the first quarter was $300,000. At the end of the second quarter of 2011, Provo expects the annual tax rate to be 32 percent because of anticipated tax credits. Pretax income for the second quarter was $350,000. Assume no items in either quarter requiring the net-of-tax presentation.
-How much income tax expense is recognized in the second quarter of 2011?

A) $103,000.
B) $104,000.
C) $112,000.
D) $122,500.
E) $208,000.