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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 $ 300,000Permanent difference (15,000) 285,000Temporary 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
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