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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
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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
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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
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