Zygote Ltd. recorded warranty expense of $125,000 in 20X6, $35,000 in 20X7, and $75,000 in 20X8. Warranty claims paid were $70,000 in 20X6, $55,000 in 20X7, and $90,000 in 20X8. Warranty amounts are tax deductible when the cash is paid. Zygote’s income tax rate is 28%.
For each 31 December 20X6 through 20X8, determine:
Delivering a high-quality product at a reasonable price is not enough anymore.
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You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
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