In 2016,Magic Table Inc.decides to add a 36-month warranty on its new product sales.Warranty costs are tax deductible when claims are settled.In its financial statements for 2016,Magic Table Inc incurs:
A) An increase in a deferred tax asset.
B) A decrease in a deferred tax asset.
C) An increase in a deferred tax liability.
D) A decrease in a deferred tax liability.
Correct Answer:
Verified
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