16. Wade Company, which has a fiscal year ending February 28 or 29, had the following pretax financial income and estimated effective annual income tax rates for the first three quarters of the year ended February 28, 2006:

Pretax Estimated Effective Annual Quarter Financial Income Income Tax Rate at End of Quarter First $60,000 40%
Second 70,000 40%
Third 40,000 45%

Wade’s income taxes expense in its interim income statement for the third quarter of Fiscal Year 2006 is:

a. $18,000.

b. $24,500.

c. $25,500.

d. $76,500.

e. Some other amount