Surf Corporation uses the Allowance Method as required by GAAP to record estimated uncollectible accounts receivable. For tax purposes the allowance method is NOT permitted and therefore the deduction for bad debts is only permitted once the account receivable is actually written off (cash method) as uncollectible.

Surf made the following entry for BOOK in 20X2:

Bad Debt Expense (debit) $72,000

Allowance for Bad Debts (credit) $72,000

Surf made the following entry for BOOK in 20X4:

Allowance for Bad Debts (debit) $72,000

Accounts Receivable - Smith Company (credit) $72,000

Book income for 20X2 = $154,500

Book income for 20X3 = $57,600

Book income for 20X4 = $308,400

Tax rate = 21%

Calculate TOTAL income tax expense for 20X3.