Sudowood, Inc. reported pretax book income of $1 million. During the current year, net reserve for warranties increased by $25,000. Book depreciation exceeded tax depreciation by $100,000. Included in its GAAP income is a dividend from an unrelated corporation in the amount of $50,000. Assuming the tax rate is 34%, the Corporation's income tax payable for the current year would be:

1. 387,600
2. 370,600
3. 340,000
4. 328,100

Also, what would Sudowood show on its books as its total federal income tax expense for the current year?

1. 387,600
2. 370,600
3. 340,000
4. 328,100