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Cullumber Co., organized on January 2, 2018, had pretax accounting income of $830000 and taxable income of $3320000 for the year ended December 31, 2018.

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Cullumber Co., organized on January 2, 2018, had pretax accounting income of $830000 and taxable income of $3320000 for the year ended December 31, 2018. The only temporary difference is accrued product warranty costs which are expected to be paid as follows: 2019 2020 2021 2022 $680000 400000 350000 610000 The enacted income tax rates are 35% for 2018, 30% for 2019 through 2021, and 25% for 2022. If Cullumber expects taxable income in future years, the deferred tax asset in Cullumber's December 31, 2018 balance sheet should be $581500. $50050o. $871500. $429000 Click if you would like to Show Work for this question: Open Show.Work

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