Question
DSilva Limited has a product warranty liability amounting to $10,000. The product warranty costs are not tax deductible until paid out to customers. The company
DSilva Limited has a product warranty liability amounting to $10,000. The product warranty costs are not tax deductible until paid out to customers. The company tax rate is 30%. The company has:
| A taxable temporary difference of $10,000. |
| A tax base of $10,000. |
| A deductible temporary difference of $10,000. |
| A future deductible amount of $0. |
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
2nd edition
978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152
