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

At December 31,2025, Berger Corporation had an estimated warranty liability of $135,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Berger should report as a deferred tax asset at December 31,2025

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