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7. XXX Limited has a product warranty liability valued at $12 000. The product warranty costs are not tax deductible until paid out to customers.
7. XXX Limited has a product warranty liability valued at $12 000. The product warranty costs are not tax deductible until paid out to customers. The company tax rate is 30%. The company has:
A) a taxable temporary difference of $12 000.
B) a deferred tax asset of $12 000.
C) a deductible temporary difference of $12 000.
D) a future deductible amount of $0.
E) a deferred tax liability of $12 000
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