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Please provide the correct answer and detailed solutions and I will give a nice feedback too. Marsh Corp. reported a deferred tax asset of $34,000
Please provide the correct answer and detailed solutions and I will give a nice feedback too.
Marsh Corp. reported a deferred tax asset of $34,000 in 202, caused by a warranty liability of $100,000. The tax rate was 34%. In 203, accounting earnings were $240,000, warranty claims paid were $78,000, and warranty expense was $39,000. The tax rate is 20% Required: 1. Calculate tax payable. 2. Calculate the tax basis of the warranty liability, (Enter your answers in thousands.) 3. Calculate the accounting basis of the warranty liablity. (Enter your answer in thousands. Amounts to be deducted should be indicated with a minus sign.) 4. Calculate the amount of the deferred income tax adjustment. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign. Round your answer to 1 decimal places.) 5. Caiculate the amount of the adjustment in requirement 4 thatiwas caused by the (a) change in the tax rate and (b) new temporary difference. (Amounts to be deducted should be indicated with a minus sign.) 6. Calculate tax expense for 203Step by Step Solution
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