问题详情

BaoInc.soldaluxurypassengerboatfromitsinventoryonDecember31for$2,000,000.ItisestimatedthatBaowillincur$100,000inwarrantyexpensesduringits5-yearwarrantyperiod.Bao’staxrateis30%.Toaccountforthetaximplicationsofthewarrantyobligationpriortoincurringwarrantyexpenses,Baoshould:
A.recordadeferredtaxassetof$30,000.
B.recordadeferredtaxassetof$30,000.
C.makenoentryuntilactualwarrantyexpensesareincurred.