Happy House, Inc., an exempt organization, records $340,000 of gross unrelated business income (UBI) in its first year of operations. The following expenses were incurred in producing the UBI.

Expense .................................................................. Amount
Cost of goods sold ............................................ $100,000
Depreciation ............................................................ 18,000
Repairs and Maintenance ..................................... 4,000
Miscellaneous ............................................................ 2,000

Happy House qualifies for the standard annual deduction and has documented plans for reinvesting 100% of net proceeds from UBI back into its exempt activities. The applicable corporate tax rate is 34%. Considering only the above facts, what is Happy House’s unrelated business income tax (UBIT) liability for the year?

a. $79,220

b. $73,440

c. $73,100

d. $0