Question - The following information is available for Carla Vista Company after its first year of operations:
Income before income taxes $320000
Federal income tax payable$139000
Deferred income tax (5400)
Income tax expense 133600
Net income $186400
Carla Vista estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was $102000. Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims?
$88500
$102000
$115500
$133600