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  3. n year one, a company has revenues of $500,000 and

n Year One, a company has revenues of $500,000 and expenses of $300,000. Of the...

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Accounting

n Year One, a company has revenues of $500,000 and expenses of $300,000. Of the expenses, $50,000 represents a warranty on a company product. However, the company only paid $10,000 as a result of this warranty. The remainder is expected to be paid in a future year in which company officials believe there is a 46 percent chance that the company will have taxable income to be reduced by this warranty cost. The enacted tax rate is 30 percent for Year One and 32 percent in periods after that. What is the total amount of income tax expense to be recognized in Year One

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