Magnolia Company reports taxable income of $147,800 for 2020.

The following items cause taxable income to be different than pretax financial income: (1) the company pays fines in 2020 for pollution caused by their manufacturing plant in the amount of $19,500; (2) the company has excess depreciation for taxable income that is $25,500 greater than the depreciation for financial income for 2020; (3) the company collected prepayments of $48,200 in 2020 for subscription revenue from customers that is not recognized in financial income until 2021.

Magnolia Company's tax rate is 35% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

Magnolia Company's pretax financial income for 2020 is

Question 8 options:

a)

$105,600.

b)

$125,100.

c)

$190,000.

d)

$241,000.