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Business, 06.12.2019 05:31 cjacobs77311

In figland company’s first year of operations (2017), the company had pre-tax book income of $500,000 and taxable income of $800,000. figland’s only temporary difference is for accrued product warranty costs, which are expected to be paid as follows: 2018 $ 100,000 2019 $ 200,000 the enacted income tax rate is 35%. figland believes there is a high likelihood that one-third of the tax benefit associated with the future deductible amounts will not be realized. required: compute the amount of deferred tax asset and related valuation allowance that would be reported in figland’s 2017 tax note.

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In figland company’s first year of operations (2017), the company had pre-tax book income of $500,00...
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