The balance of the deferred tax account, amount of income tax expense and the income tax payable. Given information: The estimated warranty liability had a balance of $110,000 at the beginning of the year. Cost of actual repairs is $35,000. Additionally accrued warranty costs are $60,000. Total sales are $380,000 for the current year. Statutory tax rate is 40%.

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Chapter 17, Problem 17.10BE

To determine

To calculate: The balance of the deferred tax account, amount of income tax expense and the income tax payable.

Given information:

The estimated warranty liability had a balance of $110,000 at the beginning of the year.

Cost of actual repairs is $35,000.

Additionally accrued warranty costs are $60,000.

Total sales are $380,000 for the current year.

Statutory tax rate is 40%.

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