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EGR Corporation has one asset worth $650,000. Accumulated Depreciation to date is $230,000 and accumulated CCA is $200,000. The Corporation also recorded warranty expense of

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EGR Corporation has one asset worth $650,000. Accumulated Depreciation to date is $230,000 and accumulated CCA is $200,000. The Corporation also recorded warranty expense of $35,000. To date no customers have required warranty service, so no warranty expenditures have been made. Assuming the tax rate is constant to this will result in a Multiple Choice A Deferred income tax asset of $25.000 A Deferred income tax asset $2.000 A Deferred Income tax fiability of 525.000

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