Question

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 (15,400 ) 344,600 Temporary difference-depreciation (19,100 ) Taxable income $ 325,500 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its income tax expense for its first year of operations

Answer 1

$81,375

Step-by-step explanation:

Calculation for What should Tringali report as its income tax expense for its first year of operations

Using this formula

Income tax expense=Taxable income*Tax rate

Let plug in the formula

Income tax expense=$325,500 x 25%

Income tax expense=$81,375

Therefore What should Tringali report as its income tax expense for its first year of operations will be $81,375