At December 31, 2023, Camille Corporation had an estimated warranty liability of $256,000 for accounting purposes and

Question:

At December 31, 2023, Camille Corporation had an estimated warranty liability of $256,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until they are paid.) The tax rate is 25%. Calculate the amount that Camille should report as a deferred tax asset at December 31, 2023.

Fantastic news! We've Found the answer you've been seeking!