Three Differences, Classify Deferred Taxes$)$ At December $31,2024,$ Rockfellow Corp. had a net deferred tax asset of $$50,000.$ An explanation of the items that compose this balance is as follows: Temporary Differences $1.$ Accrual, for book purposes, of estimated warranty costs. Warranty costs will be deducted on the tax return when paid. $2.$ Excess of tax depreciation over book depreciation $3.$ Accrual, for book purposes, of an estimated litigation settle ment expected to be paid in $2025.$ The loss will be deducted for tax purposes when paid. c$18$Exercises.indd $3$ Resulting Balances in Deferred Taxes $ $125,000(110,000)35,000$ $ $50,00010/08/222$:$56$ PM c$18\_$Kieso$18$e$\_1$PP In analyzing the temporary differences, you find that $$30,000$ of the depreciation temporary difference will reverse in $2025,$ and $$100,000$ of the temporary difference due to the warranty costs will reverse in $2025.$ The tax rate for all years is $20\%.$