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70. EGR Corporation has one asset worth $650,000. Accumulated Depreciation to date is $230,000 and accumulated CCA is $200,000. The Corporation also recorded warranty expense
70. EGR Corporation has one asset worth $650,000. Accumulated Depreciation to date is $230,000 and accumulated CCA is $200,000. The Corporation also recorded warranty expense of $35,000. To date no customers have required warranty service, so no warranty expenditures have been made. Assuming the tax rate is constant at 40%, this will result in a: A. A Deferred income tax asset of $2,000 B. A Deferred income tax liability of $2,000 C. A Deferred income tax asset of $26,000 D. A Deferred income tax liability of $26,000
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