For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 210,000 Permanent difference (14,700 ) 195,300 Temporary difference-depreciation (20,200 ) Taxable income $ 175,100 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its income tax expense for its first year of operations? $52,500. $48,825. $43,775. $5,050.
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 210,000 Permanent difference (14,700 ) 195,300 Temporary difference-depreciation (20,200 ) Taxable income $ 175,100 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its income tax expense for its first year of operations? $52,500. $48,825. $43,775. $5,050.
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 |
$ |
210,000 |
|
|
Permanent difference |
|
(14,700 |
) |
|
|
|
195,300 |
|
|
Temporary difference-depreciation |
|
(20,200 |
) |
|
Taxable income |
$ |
175,100 |
|
|
|
Tringali's tax rate is 25%. Assume that no estimated taxes have been paid.
What should Tringali report as its income tax expense for its first year of operations?
- $52,500.
- $48,825.
- $43,775.
- $5,050.
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