What is the income tax expense

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Question - During its first year of operations a company recorded accrued warranty expense totaling $75,000 for book purposes. For tax purposes, $25,000 of the expenses is deductible during the first year of operations and $50,000 is deductible during the second year of operations. Book income from operations during the first year was $750,000. The income tax rate was 45% during the first year and 40% during the second year.

What is the income tax expense to be reported in the income statement for the first year of operations?

Reference no: EM132085444

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