In 2016, Waterford Corporation Reported Pretax Financial Income of $400,000

In 2016, Waterford Corporation reported pretax financial income of $400,000. Included in that pretax financial income was $150,000 of nontaxable life insurance proceeds received as a result of the death of an officer; $120,000 of warranty expenses accrued but unpaid as of December 31, 2016; and $10,000 of bad debts estimated to be uncollectible but not written off as of December 31, 2016) . Assuming that no income taxes were previously paid during the year and an income tax rate of 30%, what is the amount of income taxes payable on December 31, 2016?

A) $ 42,000
B) $108,000
C) $114,000
D) $126,000