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

Municipal bond income 120,000

Installment sales profit to be taxed in 2026 160,000

Rowen should report 2025 income taxes expense of

a. $580,000

b. $624,000

c. $576,000

d. $600,000

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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 had the following transactions:

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

Municipal bond income 120,000

Installment sales profit to be taxed in 2026 160,000

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

a. $524,000

b. $564,000

c. $600,000

d. $628,000