Royal Manufacturers acquires an asset for $280,000. The asset has a useful life of 4 years and an estimated salvage value of $20,000. It is expected to generate $150,000 of cash flow each year over its useful life. Royal will depreciate the asset using the double-declining balance method for tax purposes, but for financial reporting purposes, it will depreciate the asset on a straight-line basis. The companys tax rate is 40%.

Taxes payable in Year 4 are closest to: