At December 31, 2022, Suffolk plc had an estimated warranty liability of 105,000 for accounting purposes and
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At December 31, 2022, Suffolk plc had an estimated warranty liability of £105,000 for accounting purposes and £0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 40%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2022, assuming sufficient taxable income in future years.
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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