Amanda Company began manufacturing operations on January 2, and Year 4. In Year 4, Amanda earned a pretax book income of $300,000 and had taxable income of $400,000. The difference related to accrued product warranty costs which are expected to be paid out as follows: Year 5: $600,000; Year 6: $30,000; and Year 7: $10,000. The enacted tax rates are 30% for Years 4 and 5 and 40% for Years 6 and 7. What is the income tax expense to be reported by Amanda on the Year 4 income statement?