The Following Information Is Available for Ryan Corporation: Assets at Cost-$260,000

The following information is available for Ryan Corporation: Assets at cost-$260,000 (8 year life, straight-line depreciation, no salvage value, purchased 2 years ago) ; Accumulated depreciation-$65,000.Accumulated CCA-$105,300; CCA rate-30%; meals and entertainment recorded in the books-$12,000; golf dues paid and expensed on the books-$5,000; pre-tax accounting income-$40,000.No CCA was taken during the current year.Based on this information and a tax rate of 45%, what is taxable income?

A) $34,000
B) $46,000
C) $35,000
D) $51,000
E) $41,000