Marlin Corporation reported pretax book income of $1,008,000. During the current year, the net reserve for warranties increased by $26,600. In addition, book depreciation exceeded tax depreciation by $100,800. Finally, Marlin subtracted a dividends received deduction of $15,800 in computing its current year taxable income. Marlin's current income tax expense or benefit would be:

1. $238,434 tax expense.
2. $235,116 tax expense.
3. $211,680 tax expense.
4. $207,228 tax expense.