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Olong Ltd. started operations in 20X6. The company provided the following information for its warranty...

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Accounting

Olong Ltd. started operations in 20X6. The company provided the following information for its warranty balances for the past four years:
20X620X720X820X9
Warranty costs accrued $ 43,000 $ 38,000 $ 36,500 $ 58,000
Costs incurredwarranty work 31,50026,50048,00036,500
Costs incurreddevelopment costs 63,00068,00078,00043,000
Amortizationdevelopment costs 011,00028,00043,000
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 "0" 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?

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