Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000. Finally, Marlin subtracted a dividends received deduction of $15,000 in computing its current-year taxable income. Marlin's current income tax expense or benefit would be:

A. $210,000 tax expense.
B. $205,800 tax expense.
C. $236,250 tax expense.
D. $233,100 tax expense.


Answer: D

Business

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