In year 1, Ling estimates warranty expense of $60,000 for financial reporting purposes. The number of warranties deducted on the tax return was $40,000. The difference will be deducted from the tax return in the following year. The income tax rate is 40%. what is the balance in the deferred tax asset account at the end of year 1?

Answer rating: 100% (QA)

Solution The correct answer is 8000 Explanation Balance in the defe... View the full answer