EGR Corporation has one asset worth $450,000. Depreciation accumulated to date is $180,000 and accumulated...
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Accounting
EGR Corporation has one asset worth $450,000. Depreciation accumulated to date is $180,000 and accumulated CCA is $220,000.The Corporation also recorded warranty expense of $30,000. To date no customers have required warranty service. Assuming the tax rate is 40% what is the income tax implication?
a deferred income tax asset of 12,000
a deferred income tax liability of 40,000
a deferred tax asset of 30,000
a deferred income tax asset of 16,000
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