Taylor Company began manufacturing operations on January 2, 20X1. During 20X1 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:

20X2 $30,000

20X3 $15,000

20X4 $ 5,000

If Taylor paid no estimated taxes, the income tax payable at the end of 20X1 is:

$45,500

$42,000 $

46,900

$43,750