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Hunt Co. at the end of 2025, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax
Hunt Co. at the end of 2025, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $950,000 Estimated warranty expenses deductible for taxes when paid $1,200,000 Extra depreciation ($1,950,000) Taxable income $200,000 Estimated warranty expense of $800,000 will be deductible in 2026, $300,000 in 2027, and $100,000 in 2028. The use of the depreciable assets will result in taxable amounts of $650,000 in each of the next
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