Widgets inc uses the straight-line method to depreciate, Ask an Expert

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Widgets Inc, uses the straight-line method to depreciate assets in determining its finacials profit. Widgets also accrues an amount for warranty expense at the end of each year even though it normally takes a few years for any defects to show in its products.For tax purposes, Widgets used an acceleration method of depreciation and deducts warranty expenses when occured. What deffered tax assets or liabilities will result from this accounting proctices?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9992056

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