Ana Foods reported $300,000 pretax accounting income in income before taxes for 2013, its first...
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Accounting
Ana Foods reported $300,000 pretax accounting income in income before taxes for 2013, its first year of operations. Included in the income statement was an installment sale of property in the amount of $70,000. However, for tax purposes, Ana reported the income in the year the cash was collected. Cash collected on the installment sale was $30,000 in 2014 and $40,000 in 2015. The company also had $20.000 interest from investment in municipal bonds. The income tax rate is 35%. What is the income tax expense in the 2013 income statement? O $98,000 $112,000 $87,500 O $738,500
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