North Dakota Corporation purchased a machine for $20,000 in January 2021. North

Dakota records a full year depreciation on assets

in the year of purchase, and their year

ends December 31

st.

. For financial reporting purposes, North Dakota depreciates the

machine on a straight

-

line basis over a four

-

year period. There is no residual value. For

tax purposes, depreciation expense on

the machinery is 50% of cost in 2021, 30% in

2022, and 20% in 2023. Pretax accounting income for 2021 was $150,000, which

includes interest revenue of $20,000 from municipal bonds. The enacted tax rate is 30%

for all years. There are no other differences

between accounting and taxable income.

Current income taxes payable at December 31, 2021 are:

A)

$42,000

B)

$37,500

C)

$43,500

D)

$45,000