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For its first year of operations Trinity Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $300,000 Permanent difference
For its first year of operations Trinity Corporation's reconciliation of pretax accounting income to taxable income is as follows:
Pretax accounting income $300,000 Permanent difference (15,000) 285,000 Temporary difference-depreciation (20,000) Taxable income $265,000 Trinity's tax rate is 40%. What should Trinity report as its income tax expense for its first year of operations?
A. $120,000. B. $114,000. C. $106,000. D. $8,000.
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