Multiple Choice
During its first year of operations ending on December 31, 2016, the Dakota Company reported pretax accounting income of $600,000. The only difference between taxable income and accounting income was $80,000 of accrued warranty costs. These warranty costs are expected to be paid as follows: 
Assuming an income tax rate of 30% in 2016, what amount of income tax expense should Dakota report on its 2016 income statement?
A) $175,000
B) $180,000
C) $185,000
D) $204,000
Correct Answer:
Verified
Correct Answer:
Verified
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