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Two differences no beginning deferred taxes multiple rates

Question: (Two Differences, No Beginning Deferred Taxes, Multiple Rates) Teri Hatcher Inc., in its first year of operations, has the following differences between the book basis and tax basis of its assets and liabilities at the end of 2013.

Book Basis Tax basis

Equipment (net) $400,000 $340,000

Estimated warranty liability $200,000 $-0-

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Accounting Basics: Two differences no beginning deferred taxes multiple rates

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