Olong Ltd started operations in X The company provided the following information for its warranty balances for the past four years:
XXXX
Warranty costs accrued $ $ $ $
Costs incurredwarranty work
Costs incurreddevelopment costs
Amortizationdevelopment costs
Tax rate
Required:
What is the tax basis for development costs and the provision for warranty costs in each year? Leave no cells blank be certain to enter wherever required.
What is the accounting basis for development costs and the provision for warranty costs in each year? Amounts to be deducted should be indicated with a minus sign.
What is the deferred tax balance in each year? Amounts to be deducted should be indicated with a minus sign.
Is the deferred tax balance an asset or a liability?
