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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 $ 300,000Permanent difference (15,000 )285,000Temporary 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?$106,000.$120,000.$8,000.$114,000.

Respuesta :

Answer:

option C

Explanation:

given,

Pretax accounting income               $300,000    

Permanent difference                        ( 15,000)  

                                                         285,000    

Temporary difference-depreciation (20,000)

 Taxable income                                  $265,000    

    Tringali's tax rate = 40 %                  

Deferred tax only created on temporary difference :  

in this question temporary difference is $20,000

deferred income tax liability =  temporary difference  x tax rate

                                               = $20,000  x 40%

                                               = $20,000  x 0.4

                                               = $8,000

Hence, the correct answer is option C

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