Olong Ltd$.$ started operations in $20$X$6.$ The company provided the following information for its warranty balances for the past four

years: $20$X$620$X$720$X$820$X$9$

Warranty costs accrued $ $39,000$ $ $34,000$ $ $34,500$ $ $54,000$

Costs incurred$$warranty work $29,50024,50044,00034,500$

Costs incurred$$development costs $59,00064,00074,00039,000$

Amortization$$development costs $014,00026,00039,000$

Tax rate $40\%38\%38\%36\%$

Required:

$1)$What is the tax basis for development costs and the provision for warranty costs in each year? $($Leave no cells blank $-$ be certain to

enter $"$O$"$ wherever required.$)$

$2)$What is the accounting basis for development costs and the provision for warranty costs in each year? $($Amounts to be deducted

should be indicated with a minus sign.$)$

$3)$What is the deferred tax balance in each year? $($Amounts to be deducted should be indicated with a minus sign.$)$

$4)$Is the deferred tax balance an asset or a liability?