Angel Corporation Reported Pretax Book Income of $1,000,000

question 3

Multiple Choice

Angel Corporation reported pretax book income of $1,000,000.During the current year,the net reserve for warranties increased by $25,000.In addition,tax depreciation exceeded book depreciation by $100,000.Finally,Angel subtracted a dividends received deduction of $25,000 in computing its current year taxable income.Using a tax rate of 34%,Angel's hypothetical tax expense in its reconciliation of its income tax expense is:

• A) $340,000.
• B) $331,500.
• C) $314,500.
• D) $306,000.

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