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At December 31, 2019, BLurry Corporation had an estimated warranty liability of $98,000 for accounting purposes and $0 for tax purposes. (The warranty costs are
At December 31, 2019, BLurry Corporation had an estimated warranty liability of $98,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 35%.
Compute the amount BLurry should report as a deferred tax asset at December 31, 2019.
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