Income tax expense for first year of operations, Accounting Basics

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Income tax expense for first year of operations

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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Accounting Basics: Income tax expense for first year of operations

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Accounting Basics: Income tax expense for first year of operations

Reference No:- TGS039662

Have a Question? (oR Write a Review)

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Accounting Basics: Income tax expense for first year of operations

Reference No:- TGS039662

Recent Questions Asked Accounting Basics

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