What deferred tax asset in blossom december balance sheet

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Blossom Co., organized on January 2, 2021, had pretax accounting income of $ 830000 and taxable income of $ 2470000 for the year ended December 31, 2021.

The only temporary difference is accrued product warranty costs which are expected to be paid as follows:

2022 $ 574000

2023 246000

2024 246000

2025 574000

Problem 1: The enacted income tax rates are 25% for 2021, 20% for 2022 through 2024, and 15% for 2025. If Blossom expects taxable income in future years, the deferred tax asset in Blossom's December 31, 2021 balance sheet should be

Option 1: $ 213200.
Option 2: $ 299300.
Option 3: $ 266500.
Option 4: $ 410000.

Reference no: EM132987315

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