Solution-Determine the amount of Ovate deferred tax asset

Determine the amount of Ovate deferred tax asset

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Reference no: EM132649485

Problem - Ovate, Inc., earns $140,000 in book income before tax and is subject to a 21% marginal Federal income tax rate. Ovate records a single temporary difference; there have been no book-tax differences in prior tax years. Warranty expenses deducted for book purposes are $8,000, of which only $2,000 are deductible for tax purposes.

Required -

a. Determine the amount of Ovate's deferred tax asset or liability.

b. Express your computation as a Microsoft Excel formula.

Reference no: EM132649485

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Determine the amount of Ovate deferred tax asset

Reference no: EM132649485

Reference no: EM132649485

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