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At the end of 2023, its first year of operations, Novak Corp. prepared the following reconciliation between pre-tax accounting income and taxable income: Pre-tax
At the end of 2023, its first year of operations, Novak Corp. prepared the following reconciliation between pre-tax accounting income and taxable income: Pre-tax accounting income $311000 Estimated lawsuit expense 747000 Instalment sales (622000) Taxable income $436000 The estimated lawsuit expense of $747000 will be deductible in 2025 when it is expected to be paid. The instalment sales will be realized at $311000 in each of the next two years. The income tax rate is 30% for all years. The total income tax expense to be reported on the income statement is O $311000. O $155500. O $93300. O $130800.
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