Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2011, for a total of $3,200. Tungsten filed its 2011 tax return in 2012 and the return showed a tax liability $4,200. At the time of filing, March 15, 2012, Tungsten paid an additional $1,000 in Federal income taxes. How does the additional payment of $1,000 impact Tungstens E & P?
a. Increase by $1,000 in 2011.
b. Increase by $1,000 in 2012.
c. Decrease by $1,000 in 2011.
d. Decrease by $1,000 in 2012.
e. None of the above.