Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000. Finally, Marlin subtracted a dividends received deduction of $15,000 in computing its current-year taxable income. Marlin's current income tax expense or benefit would be:

B $377,400

Explanation:

Pretax Income = $1000,000

First following adjustment in the pretax income will be made

Add back the increase in reserve warranties because it will result in increase of warranty expense by $25,000.

Exceeding Book depreciation will be added to the book income.

Depreciation deduction will decrease the boon income.

Income chargeable to tax = $1,000,000 + $25,000 + $100,000 - $15,000

Income chargeable to tax = $1,110,000

Now Calculate the Income tax amount using rate of 34%

Income tax Expense = $1,110,000 x 34% = 377,400

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough