Question: At December 3 1 , 2 0 2 5 , Monty Corporation had an estimated warranty liability of $ 1 0 0 , 0 0

At December 31,2025, Monty Corporation had an estimated warranty liability of $100,000 for accounting purposes and $0 for tax
purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 30%.
Compute the amount Monty should report as a deferred tax asset at December 31,2025.
Deferred tax asset at December 31,2025
$
At December 31,2025, Monty Corporation had an estimated warranty liability of

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