Edward Toys, Inc. recorded book income of $260,000 in 2020. It does not have any permanent differences, and the only temporary difference relates to a $26,000 warranty expense that it recorded for book purposes. Edward Toys anticipates fulfilling half of the warranties in the following year and then the rest equally over the next 2 years. The current enacted tax rate is 40%. The enacted tax rates for the following 3 years are 32%, 25%, and 25%, respectively. What deferred tax amount should Edward Toys record for this temporary difference? The book basis of the warranty liability is Inc. will use to calculate the deferred tax am Therefore, Edward Shoes will record a defei than the tax basis of the liability. The tax rate Edward Toys, in the amount of higher lower