Bedford had this info at the end of 2024, its first year of operations:

Pretax book income. $800000.

Estimated litigation expense $200000

Excess of taxer book deprecation $300000

Interest income on municipal bonds $100000.

No other permanent or temporary differences exist. The litigation item will be paid in 2025. The depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable.

The 12/31/24 Income Tax Payable is:

Select one:

a.

$60,000

b.

$150,000

c.

$180,000

d.

$240,000

e.

$120,000