For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Tringali's tax rate is 40%. Assume that no estimated taxes have been paid.
- What should Tringali report as income tax payable for its first year of operations?

Question

For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows:  Tringali's tax rate is 40%. Assume that no estimated taxes have been paid.
- What should Tringali report as income tax payable for its first year of operations?

Quizplus · Accepted Answer

$265,000 × 40% = $106,000

For Its First Year of Operations, Tringali Corporation's Reconciliation of Pretax