If amanda paid no estimated taxes what is the income tax


Question - Amanda co began manufacturing operations on January 2 year 4 in year 4 Amanda earned a pretax book income of 300,000 and had taxable income of 400,000 the difference related to accrued product warranty costs which are expected to be paid out as follows year 5 60,000 year 6 30,000 and year 7 10,000 the enacted tax rates are 30% for years 4 and 5 and 40% for years 6 and 7 if Amanda paid no estimated taxes what is the income tax payable to be reported at the end of year 4?

a-120,000

b-125,000

c-130,000

d-134,000

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Accounting Basics: If amanda paid no estimated taxes what is the income tax
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