At the End of 2020, Its First Year of Operations

Multiple Choice

At the end of 2020, its first year of operations, Kali Corp. prepared the following reconciliation between pre-tax accounting income and taxable income: The estimated lawsuit expense of $ 400,000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $ 300,000 in each of the next three years. The income tax rate is 25% for all years. Kali adheres to IFRS requirements. The current income tax payable is

A) $ 0.
B) $ 75,000.
C) $ 150,000.
D) $ 200,000.