Ballet Company is in a 30% tax rate. They show operating income before taxes of $1,000,000 before considertion of the following items.

Depreciation expense: Financial reporting (straight line) 10,000; Tax (MACRS) $30,000

Discontinued loss on operations: (55,000)

Increase in market adjustment for Available for Sale bond investment: $20,000

Change in beginning inventory due to switch to LIFO method: Decrease $50,000.

Change in ending inventory due to switch to LIFO method: Decrease $70,000

What amount of income tax expense (provision for taxes) would Ballet report on their income statement?

2 Ballet Company is in a 30% tax rate. They show operating income before taxes of $1,000,000 before considertion of the following items. Depreciation expense: Financial reporting (straight line) 10,000; Tax (MACRS) $30,000 Discontinued loss on operations: (55,000) Increase in market adjustment for Available for Sale bond investment: $20,000 Change in beginning inventory due to switch to LIFO method: Decrease $50,000. Change in ending inventory due to switch to LIFO method: Decrease $70,000 What amount of income tax expense (provision for taxes) would Ballet report on their income statement? Income tax expense 250,500 250,500