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Mini, Inc, earns pretax book net income of $1,048,000 in 2016. Mini dducted $191,600 in bad debt expense for book purposes. This expense is not

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Mini, Inc, earns pretax book net income of $1,048,000 in 2016. Mini dducted $191,600 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports $1,100,400 of pretax book net income in 2017. Mini did not deduct any bad debt expense for book purposes in 2017 but did deduct $143,700 in bad debt expense for tax purposes. Mini has no other temporary or permanent differences. The applicable U.S. tax rate is 35%, and Mini earns an after-tax rate of return on capital of 8%. Enter below the 2017 end-of-year balance in Mini's deferred tax asset and deferred tax liability balance sheet accounts. If an amount is zero, enter "0" 2017 a. Deferred tax asset account balance b. Deferred tax liability account balance In time value of money terms, what has been the cost to Mini of the deferred tax deduction for bad debts? The present value factor at 8% is 0.9259

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