Fourth Question---Headland financial income for Lake Inc. is $350,000, and its taxable income is $110,000 for 2018. Its only temporary difference at the end of the period relates to a $60,000 difference due to excess depreciation for tax purposes. If the tax rate is 38% for all periods, compute the amount of income tax expense to report in 2018. No deferred income taxes existed at the beginning of the year.

What is income tax expense?