Exercise $13-21(Algorithmic)(LO.1,4)$

Mini, Inc., earns pretax book net income $of$ $$1,882,000in2023,$ its first year $of$ operations. Mini reported $a$ $$108,800$ allowance

for bad debts $on$ its balance sheet for book purposes.

Mini reports $$1,976,100of$ pretax book net income $in2024.$ Mini did not recognize any bad debt expense for book purposes $in$

$2024$ but did deduct $$81,600in$ bad debt expense for tax purposes. Mini reports $no$ other temporary $or$ permanent book$-$tax

differences. The applicable $U.S.$ Federal corporate income tax rate $is21\%,$ and Mini earns $an$ after$-$tax rate $of$ return $on$ capital

$of4\%.$

Enter below the $2024$ end$-of-$year balance $in$ Mini's deferred tax asset $or$ liability $at$ the end $of2024$ and its deferred tax benefit

$or$ expense.

$Ifan$ amount $is$ zero, enter $"0".If$ required, round your answer $to$ the nearest whole value.

$2024$

$a.$ Deferred tax benefit $or$ expense

$b.In$ net present value terms, what has been the cost $to$ Mini $of$ the deferred tax deduction for bad debts? The present value

factor $at8\%is0\mathrm{.}9615.$

$