The following information applies to the operations of MK Inc. for 2018 and 2019.Assume a tax rate of 35% for both years. 2018 information: Sales on account in the amount of $650,000 Warranty expense and associated liability in the amount of $120,000 No other expenses incurred. 2019 information: Sales on account in the amount of $205,000 Warranty repairs made in the amount of $61,000 No expenses incurred. What is MK's taxable income for 2018? A. $589,000 B. $770,000 C. $650,000 D. $530,000