Hirsch Incorporated, is a calendar year corporation that has had revenues of less than $500,000 since inception. In year 12, Hirsch had a net operating loss of $50,000 that was able to be used in full in year 13. For year 13, Hirsch expects to have taxable income prior to NOL deduction of $100,000. How will Hirsch avoid a penalty for underpayment of estimated Federal taxes in year 13?

a. Hirsch must pay 100% of the tax shown on its year 13 return via estimated taxes to avoid an underpayment penalty.

b. Hirsch must pay the amount of taxes owed on its year 12 return via estimated taxes to avoid an underpayment penalty.

c. Hirsch must pay 90% of the tax shown on its year 13 return via estimated taxes to avoid an underpayment penalty.

d. Hirsch may pay the lower of the amount of taxes owed in year 12 or 100% of the tax shown on the return for year 13 via estimated taxes to avoid an underpayment penalty.