In Its First Three Years of Operations Sharp Chairs Reported

Multiple Choice

In its first three years of operations Sharp Chairs reported the following operating income (loss) amounts: There were no deferred income taxes in any year. In 2017, Sharp elected to carry back its operating loss. The enacted income tax rate was 35% in 2016 and 40% thereafter. In its 2018 balance sheet, what amount should Sharp report as current income tax payable?

A) $900,000.
B) $1,260,000.
C) $1,440,000.
D) $2,160,000.