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For its first year of operations, Tringali Corporation's incomplete reconcilliation of pretax accounting income to taxable income is as follows: Pretax accounting Permanent difference income
For its first year of operations, Tringali Corporation's incomplete reconcilliation of pretax accounting income to taxable income is as follows: Pretax accounting Permanent difference income $300,000 (15,000) 285,000 Temporary difference - depreciation Taxable income At the end of the first year, the book value of the depreciable equipment. was $30,000 and its tax basis was $10,000. Tringali 's tax rate Assume that no estimated taxes have been paid. is 25% What should Tringali report as its deferred income tax liability as of the end of its first year of operations ? a) $35,000 b) $20,000 c) $8,750 d) $ 5,000
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