In 2021, Whitlock Industries has a deferred tax asset associated with product warranties of $238,000. They expect the asset to be reversed in 2022 and 2023. Whitlock's tax accountants have heard that the corporate tax rate may increase by 1% in 2023. 

Why would Whitlock still use their current tax rate of 40% to calculate their deferred tax asset?

Answer rating: 100% (QA)

Whitlock would still use their current tax rate of 40 to calculate their deferred tax asset in 2021 for several reasons 1 Matching Principle According ... View the full answer