Day, Inc. had accounting income of $2,160,000 and a tax rate of 40% in 2020, its first year of operations.

During 2020 the company had the following transactions:

Received rent from Jane, Co. for 2020	$76,800
Municipal bond income	$96,000
Depreciation for tax purposes in excess of book depreciation	$48,000
Gross profit on installment sales to be collected in 2021	$129,600

What is the amount of income taxes payable for Day, Inc?

a. $654,400

b. $603,200

c. $686,400

d. $785,280

e. None of the above