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At December 31, 2020, Blue Corporation had an estimated warranty liability of $86,000 for accounting purposes and $0 for tax purposes. (The warranty costs are
At December 31, 2020, Blue Corporation had an estimated warranty liability of $86,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Blue should report as a deferred tax asset at December 31, 2020. Deferred tax asset at December 31, 2020 $
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