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please provide how you got the answer For the year ended December 31 , Year 1 , Health Company reported a $350,000 warranty expense in
please provide how you got the answer
For the year ended December 31 , Year 1 , Health Company reported a $350,000 warranty expense in its income statement. The expense was based on actual warranty costs of $70,000 in Year 1 and expected warranty costs of $84,000 in Year 2,$87,000 in Year 3 , and $109,000 in Year 4 . Tax rates in effect are 15% for Year 1 and Year 2, and 20% for Year 3 and beyond. At December 31 , Year 1, this difference will yield a $42,000 Deferred Tax Asset $52,500 Deferred Tax Asset $62,300 Deferred Tax Asset $51,800 Deferred Tax Asset $42,000 Deferred Tax Liability $52.500 Deferred Tax Liability $62,300 Deferred Tax Llability $51,800 Deferred Tax Llability Step by Step Solution
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