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
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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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
$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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ee33aed-9a5b-4509-b2d5-e889c7446511%2F28b63a40-7c4b-4b42-b0cf-b67e3b7ba76d%2F32tib1m_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
$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
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