Question

For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income 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

Answer 1

Answer:

$106,000

Explanation:

Calculation to determine What should Tringali report as income tax payable for its first year of operations

Using this formula

Income tax payable=Taxable income*Tringali's tax rate

Let plug in the formula

Income tax payable=265,000 x 40%

Income tax payable= $106,000

Therefore the amount that Tringali should report as income tax payable for its first year of operations is $106,000