deferred_tax_assets - $0 The tax rate for 2009 is 40%. The...

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Accounting for future taxable amounts – deferred tax assets Jesse Company had pretax financial income of $700,000 for the year ended December 31, 2009. In 2009, Jesse accrued estimated warranty expenses of $200,000 for book purposes none of which is currently deductible on their tax return. This is reflected in Jesse’s December 31, 2009 balance sheet as follows: GAAP Tax Warranty liability ($200,000)
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Unformatted text preview: $0 The tax rate for 2009 is 40%. The actual product warranty costs are expected to be paid as follows: amount Year paid Tax rate 2010 80,000 35% 2011 60,000 30% 2012 40,000 30% 2013 20,000 20% 200,000 Required : What amount should Jason report as deferred tax asset at December 31, 2009? Also, look at Jesses books for 2010-2013 if they report pretax financial income of $700,000 each year....
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This note was uploaded on 03/04/2010 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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