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Answer the following question: Deferred income tax asset related to warranties = $54000 Estimated warranty liabilities were $150000. Warranty expense was equal to claims paid.
Answer the following question:
Deferred income tax asset related to warranties = $54000
Estimated warranty liabilities were $150000.
Warranty expense was equal to claims paid.
The accounting basis is equal to -150000.
How was the -150000 calculated? Is the formula to calculate this warranty claims paid - warranty expense or is that incorrect? Explain and show you calculation.
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