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		(15,900	)
		344,100
Temporary difference-depreciation		(20,500	)
Taxable income	$	323,600

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

Multiple Choice

• $5,125.

• $80,900.

• $86,025.

• $90,000.

On October 1, 2021, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal annual payments of $440,000, beginning Oct 1, 2022. Similar transactions have carried an 12% interest rate. The right-of-use asset would be recorded at: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Multiple Choice

• $0.

• $1,586,103.

• $1,776,434.

• $2,200,000.