The amount charged to warranty expense

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 The following information is available for Kessler Company after its first year of operations:

Income before taxes                                                      $250,000

Federal income tax payable                                            $104,000

Deferred income tax                                                       (4,000)

Income tax expense                                                       100,000

Net income                                                                    $150,000

Kessler estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was $105,000. Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims?

Reference no: EM13320208

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