Tungsten Corporation, a Calendar Year Cash Basis Taxpayer, Made Estimated

Multiple Choice

Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2018, for a total of $3,200. Tungsten filed its 2018 tax return in 2019 and the return showed a tax liability $4,200. At the time of filing, March 15, 2019, Tungsten paid an additional $1,000 in Federal income taxes. How does the additional payment of $1,000 impact Tungsten's E & P?

A) Increase by $1,000 in 2018.
B) Increase by $1,000 in 2019.
C) Decrease by $1,000 in 2018.
D) Decrease by $1,000 in 2019.
E) None of the above.