19 Answer saved Points out of 1.00 Flag question Tatco's pretax book income and taxable income differ because of one item, warranty expense. Tatco reports a $169600 warranty expense and a related estimated liability for warranties for book-income purposes in 2020. It does not recognize an expense for tax purposes based on the estimate. In 2021, Tatco paid the $169600 expense (settled customer claims) for tax purposes. Its income before warranty expenses was $900,000 in 2020 and $1,200,000 in 2021. Assume that corporate tax rates are a constant 21%. What is its current tax expense and deferred tax expense in 2020? a. Current tax expense $189,000 and deferred tax expense ($35616) b. Current tax expense $189,000 and deferred tax expense $35616 c. Current tax expense $153384 and no deferred tax expense d. Current tax expense $900,000 and deferred tax expense ($169600) Question 20 Not yet answered Points out of 1.00 Tatco's pretax book income and taxable income differ because of one item, warranty expense. Tatco reports a $129800 warranty expense and a related estimated liability for warranties for book-income purposes in 2020. It does not recognize an expense for tax purposes based on the estimate. In 2021, Tatco paid the $129800 expense (settled customer claims) for tax purposes. Its income before warranty expenses was $900,000 in 2020 and $1,200,000 in 2021. Assume that corporate tax rates are a constant 21%. What is its current tax expense and deferred tax expense in 2021? Flag. question a. Current tax expense $224742 and deferred tax expense $27258 b. Current tax expense $224742 and deferred tax expense ($27258) c. Current tax expense $279258 and no deferred tax expense d. Current tax expense $252,000 and deferred tax expense ($129800)