During 20X1, its first year of operations, a company recorded depreciation expense of $50,000 for book purposes. For tax purposes during 20X1, $100,000 of depreciation expense was deducted. The temporary difference created during 20X1 will reverse equally during 20X2 and 20X3. Book income from operations during the first year was $570,000. The income tax rate is 21%. The income tax expense to be reported in the income statement for the first year of operations is

• $119,700.

• $109,200.

• $152,300.

• $130,200.