Blossom Corporation recorded warranty accruals as at December 31, 2023, in the amount of $150,300. This reversing difference will
cause deductible amounts of $50,100 in 2024, $35,100 in 2025, and $65,100 in 2026. No other reversing difference exists. Blossom's
accounting income for 2023 is $136,000 and $157,000 in each of 2024 and 2025 and the tax rate is 25%. There are no deferred tax
accounts at the beginning of 2023. Blossom Corporation was informed on December 31, 2024 that the enacted rate for 2025 and
subsequent years is 28%.
(a)
Your answer is partially correct.
Calculate the deferred tax balances at December 31, 2024 and 2025.
2024
2025
Deferred tax asset $ $
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