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In 2017, Tiger company reported pretax financial income of $5,000,000. Included in the pretax financial income are $900,000 non taxable life insurance proceeds received as a result of the death of an officer, $1,200,000 of estimated warranty expense accrued on December 31, 2017 and $200,000 of life insurance premiums for a policy for an officer.
No income tax was previously paid during the year and the income tax rate is 30%.
Question 1: What is the income tax payable on December 31, 2017?
a) $1,500,000
b) $1,230,000
c) $1,290,000
d) $1,650,000
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