Taylor Company began manufacturing operations on January 2, 2018. During 2018 Taylor reported pre-tax book income of $150,000 and had taxable income of $200,000. Taylor had a temporary difference relating to accrued product warranty costs which are expected to be paid as follows:

2019	$	30,000
2020	$	15,000
2021	$	5,000

Income tax expense for 2018 is:

Multiple Choice

• $43,000.

• $65,000.

• $67,000.

• $45,000.