1. Using the information below, what is the corporations net deferred tax liability and/or net deferred tax asset for 20x2? Provide each amount clearly labeled.

Book Tax Book Tax

Assets 20x2 20x2 20x1 20x1

Property, plant, and equipment 100,000 100,000 100,000 100,000

Accumulated depreciation 12,000 50,000 6,000 30,000

Net PPE 88,000 50,000 94,000 70,000

Liabilities

Warranty payable 20,000 0 5,000 0