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At December 31, 2020, Larkspur Corporation had an estimated warranty liability of $104,000 for accounting purposes and $0 for tax purposes. (The warranty costs
At December 31, 2020, Larkspur Corporation had an estimated warranty liability of $104,000 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 Larkspur should report as a deferred tax asset at December 31, 2020 Deferred tax asset at December 31, 2020
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