Question

At December 31, 2020, Stellar Corporation had an estimated warranty liability of $94,000 for accounting purposes...

At December 31, 2020, Stellar Corporation had an estimated warranty liability of $94,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Stellar should report as a deferred tax asset at December 31, 2020.

Deferred tax asset at December 31, 2020 _________________

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