Nestor Corp., which is not a mere holding or investment company, derives its income from retail sales. Nestor had accumulated earnings and profits of $145,000 on December 31, Year 1. For the year ended December 31, Year 2, it had earnings and profits of $115,000 and a dividends paid deduction of $15,000. It had been determined that $20,000 of the accumulated earnings and profits for Year 1 is required for the reasonable needs of the business. How much is the allowable accumulated earnings credit on December 31, Year 2?

a. $105,000

b. $125,000

c. $150,000

d. $250,000