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Infinity Production acquired a new machine at the beginning of the current year. The machine...

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Accounting

Infinity Production acquired a new machine at the beginning of the current year. The machine cost $ 900 comma 000 with no residual value expected. Infinity uses the straightminusline method for financial reporting, assuming a 6minusyear useful life. The firm classifies the equipment as 5minusyear MACRS property for tax purposes using the following percentages.
Year
MACRS(%)
1
20.00%
2
32.00
3
19.20
4
11.52
5
11.52
6
5.76
The company is subject to a 35% income tax rate and has no other bookminustax differences. Income before depreciation and tax is presented below:
Year
Income before Tax and Depreciation
1
$ 380 comma 000
2
430 comma 000
3
500 comma 000
4
700,000
5
820,000
6
950,000
What is Infinity's income tax expense for year1?

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