Question: Please answer all as this one question Q2. Problem Solving (15 marks) Olong Ltd. started operations in 20X6. The company provided the following information for

Q2. Problem Solving (15 marks) Olong Ltd. started operations in 20X6. Thecompany provided the following information for its warranty balances for the pastPlease answer all as this one question

Q2. Problem Solving (15 marks) Olong Ltd. started operations in 20X6. The company provided the following information for its warranty balances for the past four years: 20X6 20X7 Warranty costs accrued $34,000 $29,000 20X8 $32,000 20X9 $49,000 Costs incurred-warranty work 27,000 22,000 39,000 32,000 Costs incurred-development costs 54,000 59,000 69,000 34,000 Amortization-development costs 0 9,000 23,500 34,000 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? Please feel free to enter your answer(s) in the template below: 20X6 20X7 20X8 20X9 Development costs: Accounting basis Warranty costs: Accounting basis 2. What is the accounting basis for development costs and the provision for warranty costs in each year? Please feel free to enter your answer(s) in the template below: 20X6 Development costs: Accounting basis Warranty costs: 20X7 Accounting basis 3. What is the deferred tax balance in each year? Please feel free to enter your answer(s) in the template below: 20X8 20X9

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