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The following information is available for Sunland Company after its first years of operations: Income before taxes $190,000 Federal income tax payable $74,000 Deferred income
The following information is available for Sunland Company after its first years of operations: Income before taxes $190,000 Federal income tax payable $74,000 Deferred income tax (3,600) Income tax expense 70,400 Net Income 119,600 Sunland estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was $89,000. Assuming a 20% income tax rate, what amount was paid this year for warranty claims
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