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Accounting

The following information is available for Kessler Company after its first year of operations:

Income before taxes $250,000

Federal income tax payable $104,000

Deferred income tax (4,000)

Income tax expense 100,000

Net income $150,000

Kessler estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was $105,000. Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9899512

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