Diallo Corp. has pretax financial income of $5,320,000 in 2021, and
$4,189,000 in 2022.
Due to estimated warranty expense accruals, 2021's taxable income is
$110,000 higher than book income. In future periods when accrued
warranty expenses are paid, taxable income will be lower ($52,000 in 2022,
the rest in subsequent years up to 2027).
The tax rate for all years is 21%, and Diallo has no other book-tax
differences.
What amount of deferred tax asset or liability will Diallo report on its
December 31, 2022 balance sheet? Enter a deferred tax asset as a positive
number or a deferred tax liability as a negative number.