Patrick Incorporated has an estimated annual tax rate of 30% in the first quarter of 2024. Pretax income for the first quarter was $400,000. At the end of the second quarter of 2024, Provo expects the annual tax rate to be 28% because of anticipated tax credits. Pretax income for the second quarter was $450,000. Assume no items in either quarter requiring the net-of-tax presentation.
How much income tax expense is recognized in the second quarter of 2024?
$135,000.
$126,000.
$118,000.
$238,000.