MC Qu. 18 LO 16-01, 16-04 For its first year of operations Tringali Corporation\

Question

MC Qu. 18 LO 16-01, 16-04 For its first year of operations Tringali Corporation's... For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $280,000 Permanent difference (15,900) 264,100 Temporary difference-depreciation (20,900) Taxable income $243,200 Tringali's tax rate is 30%. Assume that no estimated taxes have been paid. What should Tringali report as income tax payable for its first year of operations? $84,000. $72,960. $79,230. $6,270.

Explanation / Answer

ANSWER = b) $ 72,960

Pretax accounting income $280,000

Permanent difference (15,900)

264,100

Temporary difference-depreciation (20,900)

Taxable income $243,200

Tax @ 30%= $ 72960

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