Ovate, inc., earns $140,000 in book income before tax and is subject to a 35% marginal federal income tax rate. ovate records a single temporary' difference. warranty expenses deducted for book purposes are $8,000 of which only $2,000 are deductible for tax purposes. determine the amount of onate's deferred tax asset or liability.

Deferred tax asset = $2100

Explanation:

Deferred tax asset will be created since deduction allowable for tax purposes in current year is in less amount, the other $6000 deduction for warranty expenses will be allowable in future years. Hence, it has deferred tax asset of [(8000-2000)x35%] $2100.

answer a is correct answer

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.