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A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warranties was $2 million at the beginning of the year. Its tax rate is 30%. The company booked a year-end warranty liability of $3 million.
1. As a result of this change, the firm would .
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A company switched from the cash basis to the accrual basis for recognizing warranty expense. The un...
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