The Harry Company reported for pre-tax income of $500,000 for Year 2. Its pre-tax income included $40,000 of meals and entertainment expenses and CCA in excess of depreciation of $70,000. Harry's tax rate for Year 2 was 20%. The tax rate in effect for Year 3 and beyond was 25%. The Year 3 tax rate was enacted during Year 2. At the start of Year 2, Harry's capital assets had a book value of $100,000 and a UCC of $200,000. Based on the information provided above, Harry's total reported income tax expense for Year 2 would have been: Multiple Choice $104,000. $102,500. $126,500. $125,000