Angel Corporation reported pretax book income of $1,030,000. During the current year, the net reserve for warranties increased by $29,500. In addition, tax depreciation exceeded book depreciation by $107,500. Finally, Angel subtracted a dividends received deduction of $31,000 in computing its current year taxable income. Using a tax rate of 34%, Angel's hypothetical tax expense in its reconciliation of its income tax expense is: