For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income Permanent difference $300,000 (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?
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income Permanent difference $300,000 (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?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 11RE: Barth James Inc. has the following deferred tax assets and liabilities: 12,000 noncurrent deferred...
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