At the end of its first year of operations on December 31, 2019, the Genesis Company reported pretax financial income of $100,000. An investigation of that income revealed the following items:

	Bad debts expense of $25,000 was recognized for financial reporting. The accounts will be written off in 2020 and are not deductible for tax purposes until that time.
	Interest income of $20,000 from municipal bonds was recognized in financial income. This income is exempt for tax purposes.
	Depreciation on the tax return exceeded depreciation for financial reporting purposes by $32,000.

The income tax rate is 25%. What amount should Genesis report for income taxes payable?

Group of answer choices

$23,250

None of the above

$34,250

$ 18,250

$21,750