For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 250,000 Permanent difference (14,600 ) 235,400 Temporary difference-depreciation (19,200 ) Taxable income $ 216,200 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as income tax payable for its first year of operations? $4,800. $62,500. $58,850. $54,050.
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 250,000 Permanent difference (14,600 ) 235,400 Temporary difference-depreciation (19,200 ) Taxable income $ 216,200 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as income tax payable for its first year of operations? $4,800. $62,500. $58,850. $54,050.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 27P
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Question
- For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:
|
|
|
|
|
Pretax accounting income |
$ |
250,000 |
|
|
Permanent difference |
|
(14,600 |
) |
|
|
|
235,400 |
|
|
Temporary difference- |
|
(19,200 |
) |
|
Taxable income |
$ |
216,200 |
|
|
|
Tringali's tax rate is 25%. Assume that no estimated taxes have been paid.
What should Tringali report as income tax payable for its first year of operations?
- $4,800.
- $62,500.
- $58,850.
- $54,050.
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