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

question 158

Multiple Choice

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?

• A) $120,000.
• B) $114,000.
• C) $106,000.
• D) $8,000.

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Definitions:

Production Technology

This term refers to the methods and processes used to create goods and services, incorporating tools, machinery, techniques, and knowledge.

Labor Intensive

Describing industries or processes that require a large amount of labor to produce goods or services, often associated with higher employment but lower capital investment.

Alternative Technologies

Refers to the different methods, tools, or systems that can be used as substitutes to achieve the same goal or perform the same function in a process.

Hourly Price

The cost associated with purchasing a good or service for each hour it is used or consumed.