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Question - The following information applies to the operations of MK Inc. for 2018 and 2019. Assume a tax rate of 30% for both years.
2018 information:
Sales on account in the amount of $ 655,000
Warranty expense and associated liability in the amount of $ 125,000
No other expenses incurred.
2019 information:
Sales on account in the amount of $ 220,000
Warranty repairs made in the amount of $ 67,000
No expenses incurred.
Required - What is MK's taxable income for 2018?
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