Lyons Company deducts insurance expense of $126,000 for tax purposes in 2014, but the expense is not yet recognized for accounting purposes. In 2015, 2016, and 2017, no insurance expense will be deducted for tax purposes, but $42,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40%. Assuming that income taxes payable for 2015 is $160,800 the income tax expense for 2015 would be what amount? $194,400 $160,800 $144,000 $127,200 Lyons Company deducts insurance expense of $126,000 for tax purposes in 2014, but the expense is not yet recognized for accounting purposes. In 2015, 2016, and 2017, no insurance expense will be deducted for tax purposes, but $42,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40%. Assuming that income taxes payable for 2015 is $160,800 the income tax expense for 2015 would be what amount? $194,400 $160,800 $144,000 $127,200