On its December 31, 2010 balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. Shin had reported a current deferred tax asset of

$15,000 at December 31, 2009. No estimated tax payments were made during 2010. At December 31, 2010, Shin determined that it was more likely than not that 10% of the deferred tax asset would not be realized. In its 2010 income statement, what amount should Shin report as total income tax expense?

a. $ 8,000

b. $ 8,500

c. $10,000

d. $13,000