Use the Following to Answer Questions

question 136

Multiple Choice

Use the following to answer questions
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.
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Tringali's tax rate is 40%.
What should Tringali report as its deferred income tax liability as of the end of its first year of operations?

• A)$35,000.
• B)$20,000.
• C)$14,000.
• D)$ 8,000.

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Definitions:

Transferred

Moved or shifted from one place, person, or entity to another.

Claim in Recoupment

A legal claim made by a defendant in a lawsuit to offset or reduce the amount of damages claimed by the plaintiff, based on related transactions.

Instrument

In legal and financial contexts, a formal document, such as a contract, will, or security, that has a legal effect or is meant to convey rights or obligations.

Original Payee

The initial recipient to whom a financial instrument, such as a check or promissory note, is made payable.