Selected financial information for Windham, Inc., for the year just ended is shown below.

Pretax income	$5,000,000
Interest received on municipal bonds	600,000
Gain on the sale of land reported this
year but not taxable until next year	1,000,000
Tax rate for all years	40%
Beginning balances:
Income taxes payable	-0-
Deferred tax liability	$50,000

The total income tax expense reported on Windhams income statement for the year just ended should be

A.

$960,000

B.

$2,640,000

C.

$1,760,000

D.

$1,360,000