Canes.com had the following income statement for the year ended December 31, 2018, prepared in accordance with GAAP:

Software Subscription revenues	$500,000	a
Municipal bond interest revenue	50,000	b
Sales and marketing expense	(80,000)
General and administrative expense	(65,000)
2018 Bonus expense	(40,000)	c
Depreciation expense	(25,000)	d
Meals and entertainment expense	(20,000)	e
Income before income taxes	320,000

a. $800,000 of cash payments from customers was received for software subscriptions in 2018. $300,000 of the $800,000 was deferred to 2019 because the Company had not met the revenue recognition criteria under GAAP for that portion of the cash as of December 31, 2018. All $800,000 is taxable by the IRS in 2018 and will be included on the Company's 2018 tax return.

b. Municipal bond interest will never be taxable under IRS rules.

c. The 2018 bonuses will not be paid until May 2019 and so they will not be deductible for income taxes in 2018; they will be deductible for income taxes in 2019.

d. The Company purchased $100,000 of camera equipment on January 1, 2018. The Company is depreciating the $100,000 of camera equipment (no salvage value) over four years for its financial statements on a straight-line basis. The Company will deduct $80,000 for depreciation expense on the camera equipment on its 2018 income tax return.

e. 50% of meals and entertainment expense will never be deductible for income taxes under IRS rules.

The statutory income tax rate for 2018 and all future years is 21%. How much will the Company record for income tax payable at December 31, 2018?

	A.	$7,350
	B.	$114,450
	C.	$118,650
	D.	$101,850