XYZ Corporation has one asset worth $450,000. Accumulated Depreciation to date is $190,000 and accumulated CCA is $220,000. The Corporation also recorded warranty expenses of $30,000. To date, no customers have required warranty service, so no warranty expenditures have been made. Assuming the tax rate is constant at 40%, this will result in: Question 18Select one: a. A net deferred income tax liability of $12,000 b. No temporary difference C. A net deferred income tax asset of $12,000 d. A net deferred income tax asset of $30,000

XYZ Corporation has one asset worth $450,000. Accumulated Depreciation to date is $190,000 and accumulated CCA is $220,000. The Corporation also recorded warranty expenses of $30,000. To date, no customers have required warranty service, so no warranty expenditures have been made. Assuming the tax rate is constant at 40%, this will result in: Question 18Select one: a. A net deferred income tax liability of $12,000 b. No temporary difference C. A net deferred income tax asset of $12,000 d. A net deferred income tax asset of $30,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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