Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
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
|
|
|
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
|
|
|
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
|
