What should trinity report as deferred income tax liability

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In its first year of operations, Trinity Corporation has the following reconciliation of pretax accounting income to taxable income:

Pretax accounting income $ 300,000
Permanent difference (15,000)
285,000
Temporary difference-depreciation (20,000)
Taxable income $ 265,000

Problem 1: Trinity's tax rate is 40%. Assume that no estimated taxes have been paid. What should Trinity report as its deferred income tax liability as of the end of its first year of operations

Reference no: EM132829168

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