Question $7$

$3$ pts

Cary, Inc. had pre$-$tax accounting income off $$2,400,000$ and a tax rate of $25\%$ in $2021,$ its first year of operations. During $2021$ the company had the following transactions:

Received prepaid rent from Raleigh, Co$.$ that will be earned for GAAP purposes in $2022$: $ $150,000$

Municipal bond income $($non$-$taxable$)$: $$110,000$

Depreciation for tax purposes in excess of book depreciation: $$65,000$

Installment sales profit to be taxed in $2022$: $$125,000$

For $2021,$ what is the amount of income taxes payable for Cary, Inc?

$$590,000$

$$652,500$

None of the other answers

$$487,500$

$$562,500$