Ajax Products, Inc., reported an excess of warranty expense overwarranty deductions of $72,000 for the year ended December 31,2020. This temporary difference will reverse in equal amounts of$24,000 in years 2021, 2022, and 2023. The enacted tax rates are asfollows: 2020: 40%; 2021: 25%; 2022: 21%; 2023: 20%. The reportingfor this temporary difference at December 31, 2020, would be a
Question 4 options:
| deferred tax liability of $15,840. |
| deferred tax liability of $28,800. |
| deferred tax asset of $28,800. |
| deferred tax asset of $15,840. |
