WHAT IS THE ANSWER TO THIS.

1. Bailey Manufacturing Company made the following journal entry at the end of 2012 to record customer payments received in advance for products that have not been shipped yet. Cash 29,400 Unearned Revenue 29.400 The unearned revenue represents an obligation to deliver products to the customer in years 2013 and 2014. Bailey Company is a cash basis taxpayer. It has income tax payable of $45,080 at the end of 2012, and its tax rate is 35%. What amount of income tax expense should Bailey Company report at the end of 2012? O $34.790 O $25.970 O $39,935 O $55,370