Ovate, Inc., earns $140,000 in book income before tax and is subject to a 35% marginal Federal

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Ovate, Inc., earns $140,000 in book income before tax and is subject to a 35% marginal Federal income tax rate. Ovate records a single temporary difference: Warranty expenses deducted for book purposes are $8,000, of which only $2,000 are deductible for tax purposes. There have been no book-tax differences in prior tax years.
a. Determine the amount of Ovate's deferred tax asset or liability.
b. Express your computation as an Excel formula?

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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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Question Posted: Oct 31, 2017 01:28 AM

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Ovate, Inc., earns $140,000 in book income before tax and is subject to a 35% marginal Federal

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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

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