mini, inc., earns pretax book net income of $1,750,000 in 2021, its first year of operations. mini recognized $88,400 in bad debt expense for book purposes. this expense is not yet deductible for tax purposes. mini reports no other temporary or permanent book-tax differences. the u.s. federal corporate income tax rate is 21%, and mini earns an after-tax rate of return on capital of 4%.
Enter below the 2021 end-of-year balance in Mini's deferred tax asset and deferred tax liability balance sheet accounts. If an amount is zero, enter "0". If required, round your answers to the nearest dollar. 2021 a. Deferred tax asset account balance х b. Deferred tax liability account balance 0 c. In net present value terms, what has been the cost to Mini of the deferred tax deduction for bad debts? The present value factor at 8% is 0.9259. х