Deferred tax asset and liability basics

Assignment Help Accounting Basics

Reference no: EM13140091

In 2009, Magic Table Inc. decides to add a 36-month warranty on its new product sales. Warranty costs are tax deductible when claims are settled. In its financial statements for 2009, Magic Table Inc incurs:

A. An increase in a deferred tax asset.

B. A decrease in a deferred tax asset.

C. An increase in a deferred tax liability.

D. A decrease in a deferred tax liability.

Reference no: EM13140091

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