13. El Chico Inc. uses accrual accounting for financial reporting purposes and has pretax financial income (PFI) of $10 for the current year. The company is a cash-basis taxpayer. Your review of the accounting and tax records has identified the following differences between pretax financial income (PFI) and taxable income (TI): 1. Depreciation expense for financial purposes is $3 while depreciation for tax purposes is $4. 2. At year end the company has $1 of accrued interest receivable. This income will not be taxable until next year when the income is received (e.g., cash is received). 3. At year end the company has $2 of accrued wages payable. Because the company is a cash-basis taxpayer these wages will be deducted on next year's tax return. 4. During the current year the company paid a $1 fine for violating Federal law. This fine is not tax deductible. a Given these facts, taxable income (TI) for the current year is: a. $11 b. $12 c. $13 d. $14 e. none of the above