Question

For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 280,000 Permanent difference (15,500 ) 264,500 Temporary difference-depreciation (19,300 ) Taxable income $ 245,200 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

$61,300

Step-by-step explanation:

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

Using this formula

Income tax expense=Taxable income * Tringali's tax rate

Let plug in the formula

Income tax expense=$ 245,200*25%

Income tax expense=$61,300

Therefore What should Tringali report as its income tax expense for its first year of operations will be $61,300