For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 290,000 Permanent difference (15,000 ) 275,000 Temporary difference-depreciation (20,100 ) Taxable income $ 254,900 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? $20,100. $35,100. $5,025. $8,775.
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 290,000 Permanent difference (15,000 ) 275,000 Temporary difference-depreciation (20,100 ) Taxable income $ 254,900 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? $20,100. $35,100. $5,025. $8,775.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
Related questions
Question
- For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:
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Pretax accounting income |
$ |
290,000 |
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Permanent difference |
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(15,000 |
) |
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275,000 |
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Temporary difference- |
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(20,100 |
) |
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Taxable income |
$ |
254,900 |
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Tringali's tax rate is 25%. Assume that no estimated taxes have been paid.
What should Tringali report as its
- $20,100.
- $35,100.
- $5,025.
- $8,775.
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