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

question 70

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:

Mental Age

A concept in developmental psychology that represents the cognitive ability of an individual in comparison to others of a certain chronological age.

Two Years

A time period equivalent to 24 months or approximately 730 days.

Intelligence Quotient

A measure of a person's cognitive abilities and potential, compared to the population, often calculated through standardized testing.

Stern Scale

A measurement or rating system used in a specific contextual framework, which requires further detail to define adequately.