31.

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

Pretax accounting income	$	360,000
Permanent difference		(15,000	)
		345,000
Temporary difference-depreciation		(20,500	)
Taxable income	$	324,500

Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its deferred income tax liability as of the end of its first year of operations?

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Multiple Choice

• $20,500.

• $35,500.

• $8,875.

• $5,125.