Alfa Company has the following cumulative taxable temporary differences:
12/31/08 12/31/07
$1,350,000 $960,000
The tax rate enacted for 2008 is 40%, while the tax rate enacted for future years is 30%. Taxable income for 2008 is $2,400,000 and there are no permanent differences. Cromwell's pretax financial income for 2008 is
a. $2,790,000.
b. $2,010,000
c. $1,050,000