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The following information is available for Ellicott Station after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income
The following information is available for Ellicott Station after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income tax _(6,000) Income tax expense 98,000 Net income $152,000 Ellicott estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was $90,000. Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims
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