Bedford had this info at the end of 2015, its first year of operations:

Pretax book income $900,000

estimated litigation expense $100,000

Excess of tax over book depreciation $300,000

Interest income on municipal bonds 200,000 No other permanent or temporary differences exist. The litigation item will be paid in 2018. The depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable. The 12/31/15 Income Tax Payable is:

Select one:

a. $90,000

b. $150,000

c. $180,000

d. $240,000

e. $120,000