Question
At the beginning of 2021; Blossom, Inc. had a deferred tax asset of $25000 and a deferred tax liability of $35000. Pre-tax accounting income for
At the beginning of 2021; Blossom, Inc. had a deferred tax asset of $25000 and a deferred tax liability of $35000. Pre-tax accounting income for 2021 was $1600000 and the enacted tax rate is 20%. The following items are included in Blossom's pre-tax income:
Interest income from municipal bonds
$130000Accrued warranty costs, estimated to be paid in 2022$270000
Operating loss carryforward$200000
Installment sales profit, will be taxed in 2022$140000
Prepaid rent expense, will be used in 2022$65000
The ending balance in Blossom, Inc.'s deferred tax liability at December 31, 2021 is
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