The Kay company currently uses FIFO for inventory valuation. Their records for year ended June 30,2007 reflected:

July 1, 2006 inv 100,000 units at $7.50

Purchases during the year 400,000 units at 8.00

Sales during the year 350,000 units at $15

Expenses exclusive of income tax 1,290,000

cash balance on June 30,2006 250,000

income tax rate: 45%

The use of the LIFO method will result in an approximate tax expense for fiscal 2007 of: