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Question 6 0 / 1 point In 2019, Kit Company sold mattresses for $1,200,000 with a ten-year assurance warranty. The warranty estimate in 2019

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Question 6 0 / 1 point In 2019, Kit Company sold mattresses for $1,200,000 with a ten-year assurance warranty. The warranty estimate in 2019 was 2% of the sales amount. In 2020 and 2021, $6,000 in warranty payments were made (each year). Warranties are deductible for taxes only when paid. The following information is available for the company Income before taxes Tax rates (enacted in 2019 125,000 25% each year) 2020 130,000 30% 2021 135,000 35% What is the recorded DIT expense or recovery_amount and account for 2020? (hint: use a piece of paper and track the warranty provision and DIT account) 5,400 DIT expense 1,800 DIT expense 600 DIT recovery 600 DIT expense 6,000 DIT recovery

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