Lesson 2 manda Company began manufacturing operations on January 2, Year 4. n Year 4, Amanda earned a pretax book income of $300,000 and had axable income of $400,000. The difference related to accrued product warranty costs which are expected to be paid out as follows: Year 5: 560,000, Year 6: $30,000, and Year 7: $10,000. The enacted tax rates are 30% for Years 4 and 5 and 40% for Years 6 and 7. If Amanda paid no estimated taxes, what is the income tax payable to be reported at the end of Year 4? $120,000 a. $125,000 b. C$130,000 $134,000 d