Magna Corp. reported earnings before income taxes of $2,700,000 in 20X9 when the tax rate was 40%.

Additional information for the company for 20X9 is as follows:

a. Golf club dues, $32,000

b. Depreciation expense, $63,000

c. Development costs incurred during year; capitalized for accounting purposes, $160,000

d. Warranty costs accrued during year, $36,000

e. Interest and penalty for late payment of payroll taxes, $40,000

f. CCA, $300,000

g. Amortization of capitalized development costs, $16,000

h. Costs incurred during year for warranty work completed, $27,000

Required:

Calculate 20X9 income taxes payable. Show your work.