Larkspur Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2021. The following information has been taken from the adjusted trial balance:

Accounts payable		$26,000		Interest expense		$5,000
Cash dividendscommon		60,500		Notes payable		116,000
Common shares		200,000		Retained earnings (Aug. 1, 2020)		340,400
Cost of goods sold		307,500		Salaries expense		136,000
Dividends payable		15,000		Sales		654,500
Income tax expense		28,500		Supplies expense		12,000
Income tax payable		3,500		Unearned revenue		12,600

All accounts have normal balances and total assets equal $818,500. Larkspur has a 20% income tax rate.