The following information applies to the operations of MK Inc. for 2022 and 2023. Assume a tax rate of 20% for both years.2022 information:Sales on account in the amount of $675,000Warranty expense and associated liability in the amount of $145,000No other expenses incurred.2023 information:Sales on account in the amount of $210,000Warranty repairs made in the amount of $69,000No expenses incurred.What is MK's income tax expense for 2022? Group of answer choices $121,200 $135,000 $106,000 $164,000
The following information applies to the operations of MK Inc. for 2022 and 2023. Assume a tax rate of 20% for both years.2022 information:Sales on account in the amount of $675,000Warranty expense and associated liability in the amount of $145,000No other expenses incurred.2023 information:Sales on account in the amount of $210,000Warranty repairs made in the amount of $69,000No expenses incurred.What is MK's income tax expense for 2022? Group of answer choices $121,200 $135,000 $106,000 $164,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information applies to the operations of MK Inc. for 2022 and 2023. Assume a tax rate of 20% for both years.
2022 information:
Sales on account in the amount of $675,000
Warranty expense and associated liability in the amount of $145,000
No other expenses incurred.
2023 information:
Sales on account in the amount of $210,000
Warranty repairs made in the amount of $69,000
No expenses incurred.
What is MK's income tax expense for 2022?
2022 information:
Sales on account in the amount of $675,000
Warranty expense and associated liability in the amount of $145,000
No other expenses incurred.
2023 information:
Sales on account in the amount of $210,000
Warranty repairs made in the amount of $69,000
No expenses incurred.
What is MK's income tax expense for 2022?
Group of answer choices
$121,200
$135,000
$106,000
$164,000
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