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 depreciationexceeded 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 of34%, Angel's hypothetical tax expense in its reconciliation of its income tax expense is:

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The Answer of 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 depreciationexceeded 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 of34%, Angel's hypothetical tax expense in its reconciliation of its income tax expense is:

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