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For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 250,000 Permanent
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:
Pretax accounting income | $ | 250,000 | ||
Permanent difference | (15,000 | ) | ||
235,000 | ||||
Temporary difference-depreciation | (20,600 | ) | ||
Taxable income | $ | 214,400 | ||
Tringali's tax rate is 30%. 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?
Multiple Choice
$10,680.
$20,600.
$35,600.
$6,180.
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