Sudowood, Inc. reported pretax book income of $1 million. During the current year, net reserve for warranties increased by $25,000. Book depreciation exceeded tax depreciation by $100,000. Included in its GAAP income is a dividend from an unrelated corporation in the amount of $50,000. Assuming the tax rate is 34%, the Corporation's income tax payable for the current year would be:
- 387,600
- 370,600
- 340,000
- 328,100
Also, what would Sudowood show on its books as its total federal income tax expense for the current year?
- 387,600
- 370,600
- 340,000
- 328,100