Question: Pharoah Co . , organized on January 2 , 2 0 2 5 and had pretax accounting income of $ 1 0 0 0

Pharoah Co., organized on January 2,2025 and had pretax accounting income of \$1000000 and taxable income of \(\$ 3320000\) for the year ended December 31,2025. The only temporary difference is accrued product warranty costs which are expected to be paid as follows: The enacted income tax rates are 25\% for 2025,20\% for 2026 through 2028, and 15\% for 2029. If Pharoah expects taxable income in future years, the deferred tax asset reported on Pharoah's December 31,2025 balance sheet should be \$377000.\$423400.\$580000.\$301600.
Pharoah Co . , organized on January 2 , 2 0 2 5

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