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Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ended December 31, year 1, its first year of operations:
Pretax financial income $160,000
Nontaxable interest received on municipal securities (5,000)
Long-term loss accrual in excess of deductible amount 10,000
Depreciation in excess of financial statement amount (25,000)
Taxable income $140,000
Zeff’s tax rate for year 1 is 40%.
In its year 1 income statement, what amount should Zeff report as income tax expense—current portion?