Michaels Appliance Store uses the accrual method and reports on a calendar year. Michaels provides two-year warranties on all sales of equipment. This year Michaels estimated warranty expense for book purposes, and accrued $500,000 of warranty expenses. However, during the year Michaels only spent $200,000 repairing equipment under the warranty. What can Michaels deduct for warranty expense on the tax return for this year?