Taylor Company began manufacturing operations on January 2, 2018. During 2018 Taylor reported pre-tax book income of $150,000 and had taxable income of $200,000. Taylor had a temporary difference relating to accrued product warranty costs which are expected to be paid as follows: 2019$30,0002020$15,0002021$5,000Income tax expense for 2018 is:
A. $65,000.
B. $45,000.
C. $67,000.
D. $43,000.
Answer: D
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