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or calendar year 2022 , Kane Corp. reported depreciation of $1,600,000 in its income statement. On its 2022 income tax return, Kane reported depreciation of
or calendar year 2022 , Kane Corp. reported depreciation of $1,600,000 in its income statement. On its 2022 income tax return, Kane reported depreciation of $2,400,000. Kane's income statement also included $300,000 accrued warranty expense that will be deducted for tax purposes when paid. Kane's enacted tax rates are 30% for 2022 and 2023 , and 24% for 2024 and 2025 . The depreciation difference and warranty expense will reverse over the next three years as follows: These were Kane's only temporary differences. In Kane's 2022 income statement, the net deferred portion of income taxes should be
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