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Business, 15.04.2020 00:32 corrineikerd

On December 31, 2020, Blossom Corporation had an estimated warranty liability of $84,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Blossom Corporation should report as a deferred tax asset at December 31, 2020.

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