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At December 31,2025 , Sheffield Corporation had an estimated warranty liability of $108,000 for accounting purposes and $0 for tax purposes. (The warranty costs are
At December 31,2025 , Sheffield Corporation had an estimated warranty liability of $108,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 30%. Compute the amount Sheffield should report as a deferred tax asset at December 31, 2025. Deferred taxasset at December 31, 2025$
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