Pharoah Corporation prepared the following reconciliation for its first year of operations:
Pretax financial income for 2021 $2000000
Tax exempt interest (154000)
Originating temporary difference (358000)
Taxable income $1488000

The temporary difference will reverse evenly over the next 2 years at an enacted tax rate of 30%. The enacted tax rate for 2021 is 25%.

In Pharoah’s 2021 income statement, what amount should be reported for total income tax expense?

a.$500000
b.$479400
c.$372000
d.$546200