Compute what is the amount of income tax expense

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Sheridan Company deducts insurance expense of $225000 for tax purposes in 2021, but the expense is notno yet recognized for accounting purposes. In 2022, 2023, and 2024, no insurance expense will be deducted for tax purposes, but $75000 of insurance expense will be reported for accounting purposes in each of these years. Sheridan Company has a tax rate of 20% and income taxes payable of $190000 at the end of 2021. There were deferred taxes at the beginning of 2021.

Problem 1: What is the amount of income tax expense for 2021?

Option 1: $235000

Option 2: $225000

Option 3: $190000

Option 4: $248000

Reference no: EM132730859

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