Use the following to answer the question:

In 20D, Malcom Corporation reported the following information:

Income Statement (dollars)

Sales Revenue 8,200,000 Cost of goods sold 6,400,000

________________________

Gross profit 1,800,000 Operating expenses (includes $200,000 depreciation expense) 1,250,000

________________________

Pretax income 550,000 Income tax expense (30% rate) 165,000

________________________ Net Income 385,000

Balance Sheet (dollars) 20D 20C

Accounts receivable 800,000 . 600,000

Inventory 520,000 . 480,000 Prepaid expenses . 110,000 . 120,000

Accounts payable . 340,000 . 310,000

Accrued liabilities . 80,000 . 90,000

Income taxes payable . 25,000 . 40,000

Unearned revenue . 100,000 . 200,000

Malcom's cash paid for income taxes in 20D is: A) 165,000 B) 180,000 C) 150,000 D) 135,000