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

Pretax accounting income $220,000

Permanent difference (14,000)

206,000

Temporary difference-depreciation (19,200)

Taxable income $186,800

Tringali's tax rate is 38%.

What should Tringali report as its income tax expense for its first year of operations?

$78,280.

$70,984.

$83,600.

$82,281.

2. Payment of retirement benefits:

Increases the PBO.

Reduces the PBO.

Increases the ABO.