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3 Cards in this Set

  • Front
  • Back
For its first year of operations Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:
Pretax accounting income $300,000
Permanent difference ($15,000)
285,000
Temporary difference-depreciation ($20,000)
Taxable income $265,000
Tringali's tax rate is 40%. Assume that no estimated taxes have been paid.
What should Tringali report as income tax payable for its first year of operations?

A. 120,000
B. 114,000
C. 106,000
D. 8,000
C. 106,000
For its first year of operations Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:
Pretax accounting income $300,000
Permanent difference ($15,000)
285,000
Temporary difference-depreciation ($20,000)
Taxable income $265,000
Tringali's tax rate is 40%.
What should Tringali report as its income tax expense for its first year of operations?
A. 120,000
B. 114,000
C. 106,000
D. 8,000
B. 114,000
For its first year of operations Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:
Pretax accounting income $300,000
Permanent difference ($15,000)
285,000
Temporary difference-depreciation ($20,000)
Taxable income $265,000
Tringali's tax rate is 40%.
What should Tringali report as its deferred income tax liability as of the end of its first year of operations?
A. 35,000
B. 20,000
C. 14,000
D. 8,000
D. 8,000