Masks Inc. reported $$1,500,000$ pretax accounting income for

$2022,$ its first year of operations. Included in the income statement

was an installment sale of property in the amount of $$250,000.$

However, for tax purposes, Masks Inc. reported the income in the

year the cash was collected. Cash collected on the installment sale

was $$150,000$ in $2023$ and $$100,000$ in $2024.$ In $2022,$ Masks Inc.

also had $$50,000$ in cash proceeds from an executive's life

insurance contract. The income tax rate is $25\%.$

What is the Income Tax Expense in the $2022$ income statement?

$$362,500$

$$400,000$

$$406,250$

$$375\mathrm{.}000$