In its first two years of operations Woodlock Co. reported the following pretax net income (loss) amounts:

Year 1 (2021) Year 2 (2022)

(425,000) 450,000

There were no temporary or permanent differences in either of these years. The income tax rate, enacted in advance, was 21% for both years. A valuation allowance was neither needed nor recorded in Year 1. Woodlock is a calendar year-end entity and has never paid estimated tax payments.

In its Year 2 income statement, what amount should Woodlock Co. report as income tax payable?

A. $5,250.

B. $89,250.

C. $18,900.

D. $94,500.