(L01,2) At December 31, 2017, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes...

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(L01,2) At December 31, 2017, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 40%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2017.

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