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Epsilon Company reported the following differences between book income and taxable income for the year: Depreciation expense deducted for tax purposes but not yet recognized
Epsilon Company reported the following differences between book income and taxable income for the year:
- Depreciation expense deducted for tax purposes but not yet recognized for book purposes: $50,000
- Accrued warranty expense recognized for book purposes but not yet deductible for tax purposes: $20,000
Calculate the deferred tax asset or liability for Epsilon Company at the end of the year, assuming a tax rate of 30%
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