Warren Corporation began operations in 2008 and had operating losses of $400,000 in 2009 and $300,000 in 2010. For the year ended December 31, 2011, Warren had a pretax financial income of $600,000. For 2009 and 2010, assume an enacted tax rate of 30 percent, and for 2011 a 35 percent tax rate. There were no temporary differences in any of the years. In Warren's 2011 income statement, how much should be reported as income tax expense?

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The Answer of Warren Corporation began operations in 2008 and had operating losses of $400,000 in 2009 and $300,000 in 2010. For the year ended December 31, 2011, Warren had a pretax financial income of $600,000. For 2009 and 2010, assume an enacted tax rate of 30 percent, and for 2011 a 35 percent tax rate. There were no temporary differences in any of the years. In Warren's 2011 income statement, how much should be reported as income tax expense?

Warren Corporation Began Operations in 2008 and Had Operating Losses