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In 2018, Krause Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $3,600,000. The facilities were sold in March

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In 2018, Krause Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $3,600,000. The facilities were sold in March 2019 and a $3,600,000 loss was recognized for tax purposes. Also in 2018, Krause paid $150,000 in premiums for a two-year life insurance policy in which the company was the beneficiary. Assuming that the enacted tax rate! is 30% in both 2018 and 2019, and that Krause paid $1,170,000 in income taxes in 2018. On its 2018 income staternent, Krause should report income tax expense of $90,000 Next $1,170,000 $135,000 Submit $2,250,000 Not saved

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