Olong Ltd. started operations in 20X6. The company provided the following information for its warranty balances for the past four years: Warranty costs accrued Costs incurred-warranty work Costs incurred-development costs Amortization-development costs Tax rate 20x6 $ 36,000 28,000 56,000 0 40% 20x7 $ 31,000 23,000 61,000 11,000 38% 20x8 $33,000 41,000 71,000 24,500 388 20x9 $ 51,000 33,000 36,000 36,000 36% Required: 1. What is the tax basis for development costs and the provision for warranty costs in each year? 20X6 20X7 20X8 20X9 Development costs: Tax basis Warranty costs: $ 0$ 0$ 0 $ 0 Tax basis $ 0 $ 0 $ 0 $ 0 2. What is the accounting basis for development costs and the provision for warranty costs in each year? (Amounts to be deducted should be indicated with a minus sign.) 20X6 20X7 20X8 20x9 $ 56,000 Development costs: Accounting basis Warranty costs: Accounting basis $ (8,000) $ 0 3. What is the deferred tax balance in each year? (Amounts to be deducted should be indicated with a minus sign.) 20X6 20X7 20X8 20X9 $ (22,400) Development costs: Deferred income tax balance Warranty costs: Deferred income tax balance $ 3,200