For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:Pretax accounting income$ 300,000Permanent difference(15,000 )285,000Temporary difference-depreciation(20,000 )Taxable$265,000Tringali's tax rate is 25%. Assume that no estimated taxes have been paid.What should Tringali report as its deferred income tax liability as of the end of its first year of operations?1. A) $35,000.2. B) $20,000.3. C) $8,7504. D) $5,000.O AO BO D

Deferred tax liability means liability calculated by finding difference between the comapany taxable…

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 25%. Assume that no estimated taxes have been paid. What should Tringali report as its deferred income tax liability as of the end of its first year of operations? 1. A) $35,000. 2. B) $20,000. 3. C) $8,750 4. D) $5,000. O A O B O D

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 25%. Assume that no estimated taxes have been paid. What should Tringali report as its deferred income tax liability as of the end of its first year of operations? 1. A) $35,000. 2. B) $20,000. 3. C) $8,750 4. D) $5,000. O A O B O D

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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