Solution-What is Never deferred income tax asset

What is Never deferred income tax asset

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Problem - Never, Inc., earns book net income before tax of $500,000. In computing its book income, Never deducts $50,000 more in warranty expense for book purposes than is allowed for tax purposes. Never records no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 21% and no valuation allowance is required, what is Never's deferred income tax asset reported on its GAAP financial statements?

Reference no: EM132462361

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What is Never deferred income tax asset

Reference no: EM132462361

Reference no: EM132462361

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