Northern Corporation began operations in January 2021 and purchased a machine for $20,000. Northern uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2022 was $130,000. The enacted tax rate is 25% for all years. There are no other differences between accounting and taxable income. The income taxes due for 2022 is:

Multiple Choice

$39,000.

$38,700.

$38,000.

$39,300.