17)

In its 2021 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash Flows: For the years ended December 31,

	2021				2020
Cash flow from operating activities:
Cash received from customers	$	198,422,040			$	212,173,952
Cash paid to suppliers and employees		(191,676,791	)			(200,874,336	)
Interest paid, net		(1,763,990	)			(2,298,523	)
Income taxes paid		(366,650	)			(502,250	)
Cash provided by operations		4,614,609				8,498,843
Cash flow from investing activities:
Capital expenditures and acquisitions		(3,203,579	)			(1,867,382	)
Expenditures for other assets		(39,560	)			(133,420	)
Cash used in investing activities		(3,243,139	)			(2,000,802	)
Cash flow from financing activities:
Principal payments of long-term debt and lease agreements		(1,862,485	)			(6,019,675	)
Addition to long-term debt and lease liability		3,068,378				1,394,847
Purchase of common stock and other capital transactions		(1,565,906	)			(888,231	)
Payment of dividends		(815,558	)			(1,001,968	)
Cash provided by (used in) financing activities		(1,175,571	)			(6,515,027	)
Net increase (decrease) in cash		195,899				(16,986	)
Cash at beginning of year		183,115				200,101
Cash at end of year	$	379,014			$	183,115

	2021				2020
Reconciliation of net income to net cash provided by operations:
Net income	$	1,715,433			$	2,274,067
Depreciation and amortization		3,465,504				3,485,087
Deferred income taxes		201,000				340,766
Changes in assets and liabilities, net of acquisitions:
Decrease (increase) in receivables		(2,857,353	)			4,080,668
Decrease (increase) in inventories		(351,508	)			6,037,490
Increase (decrease) in prepaid expenses		357,648				(90,350	)
Increase (decrease) in controlled disbursements		369,394				79,718
Increase (decrease) in accounts payable		1,728,676				(8,124,148	)
Increase (decrease) in accrued expenses		(14,185	)			413,616
Other, net						1,929
Cash provided by operations	$	4,614,609			$	8,498,843

Required: Assuming the decrease in accrued expenses during fiscal year 2021 included a $13,000 reduction due to taxes, compute the income tax expense for Kinney in that year.

Income tax expense