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Wayne Co., organized on January 2, 2020 had pretax accounting income 8 $880,000 and taxable income of $1,360,000 for the year ended December 31, 2020,
Wayne Co., organized on January 2, 2020 had pretax accounting income 8 $880,000 and taxable income of $1,360,000 for the year ended December 31, 2020, The only temporary difference is accrued Product warranty costs which are expected to be paid as follows: 2021 2022 $240,000 $240,000 The enacted income tax rates are 30% for 2020, 20% for 2021 and 2022, and 15% afterwards. If Wayne expect s taxable income En future years, the deferred tax asset in Wayne's December 31, 2020 balance sheet should be c) $ 144,000 $ 96,000 $264, 000 d) $ 320, 000
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