Mini, Inc , earns pretax book net income of $ 1 , 8 9 4 , 0 0 0 in 2 0 2 3 , its first year of operations Mini reported a $ 2 1 0 , 8 0 0 allowance for bad debts on its balance sheet for book purposes Mini reports $ 1 , 9 8 8 , 7 0 0 of pretax book net income in 2 0 2 4 Mini did not recognize any bad debt expense for book purposes in 2 0 2 4 but did deduct $ 1 5 8 , 1 0 0 in bad debt expense for tax purposes Mini reports no other temporary or permanent book tax differences The applicable U S Federal corporate income tax rate is 2 1 , and Mini earns an after tax rate of return on capital of 4 Enter below the 2 0 2 4 end of year balance in Mini's deferred tax asset or liability at the end of 2 0 2 4 and its deferred tax benefit or expense If an amount is zero, enter 0 If required, round your answer to the nearest whole value 2 0 2 4 a Deferred tax benefit or expense b In net present value terms, what has been the cost to Mini of the deferred tax deduction for bad debts The present value factor at 8 is 0 9 6 1 5

Question

Mini, Inc , earns pretax book net income of $ 1 , 8 9 4 , 0 0 0 in 2 0 2 3 , its first year of operations  Mini reported a $ 2 1 0 , 8 0 0 allowance for bad debts on its balance sheet for book purposes  Mini reports $ 1 , 9 8 8 , 7 0 0 of pretax book net income in 2 0 2 4   Mini did not recognize any bad debt expense for book purposes in 2 0 2 4 but did deduct $ 1 5 8 , 1 0 0 in bad debt expense for tax purposes  Mini reports no other temporary or permanent book   tax differences  The applicable U   S   Federal corporate income tax rate is 2 1   , and Mini earns an after   tax rate of return on capital of 4     Enter below the 2 0 2 4 end   of   year balance in Mini's deferred tax asset or liability at the end of 2 0 2 4 and its deferred tax benefit or expense  If an amount is zero, enter   0     If required, round your answer to the nearest whole value  2 0 2 4 a   Deferred tax benefit or expense b   In net present value terms, what has been the cost to Mini of the deferred tax deduction for bad debts  The present value factor at 8   is 0   9 6 1 5

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Mini, Inc., earns pretax book net income of $ 1 , 8 9 4 , 0 0 0 in 2 0 2 3 , its

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