North, Inc., earns a book net income before tax of $500,000 in 2010. In computing its book income, North deducts $50,000 more in warranty expense for book purposes than allowed for tax purposes. North has no other temporary or permanent differences. Assuming the U.S. tax rate is 35% and no valuation allowance is required, what is North's current income tax expense reported on its financial statements for 2010? 

a. $175,000 

b. $192,500 

c. $157,500 

d. $17,500 

e. None of the above

Answer rating: 100% (QA)

Option a ie 175000 is the answer because 35 of 50000... View the full answer