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At December 31, 2020, Sheffield Corporation had an estimated warranty liability of $82,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%.Compute the amount Sheffield should report as a deferred tax asset at December 31, 2020.
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At December 31, 2020, Sheffield Corporation had an estimated warranty liability of $82,000 for accou...
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