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Rowen, Inc. had pre-tax accounting income of $3,000,000 and a tax rate of 20% in 2025, its first year of operations. In 2025, the company

Rowen, Inc. had pre-tax accounting income of $3,000,000 and a tax rate of 20% in 2025, its first year of operations. In 2025, the company had the following transactions:

Received rent from Jane, Co. for 2026 $ 100,000

Nondeductible EPA fine (expensed for book purposes) 80,000

Installment sales profit to be taxed in 2026 160,000

Rowen should report 12/31/25 income taxes payable of

a. $644,000

b. $668,000

c. 604,000

d. $628,000

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