Question: At December 3 1 , 2 0 2 4 , Lance has a warranty liability of $ 2 million and taxable income of $ 7

At December 31,2024, Lance has a warranty liability of $2 million and taxable income of $75 million. At December 31,2023, Lance reported a deferred tax asset of $447,000 related to this difference in reporting warranties; its only temporary difference. The enacted tax rate is 25% each year.

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