Question:XYZ Company reports book income of $720,000 for Year 1, which includes a Warranty Expense of $80,000. For tax purposes, warranty costs are not deductible until incurred. Actual expenditures for warranty costs during Year 1 totaled $48,000. The tax rate for Year 1 is 30 percent.

Given the above information, what amount should XYZ Company report as a current liability for Income Tax Payable on its December 31 Year 1 Balance Sheet? 

A $192,000 
B $201,600 
C $216,000 
D $225,600 

+ Answer
A 

+ Explanation
Answer not sure

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Md. Habib Ullah

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