Rom Corp. began business in Year 1 and reported taxable income of
$50,000
on its Year 1 tax return. Rom's enacted tax rate is
30%
for Year 1 and future years. The following is a schedule of Rom's December 31, Year 1, temporary differences in thousands of dollars: \table[[,12/31/Y1 book basis,Future taxable (deductible) amounts],[,over (under) tax basis,Year 2,Year 3,Year 4,Year 5],[Equipment,10,
(5)
,5,5,5],[Warranty liability,
(20)
,
(10)
,
(10)
,,],[Deferred compensation liability,
(15)
,,
(5)
,,
(10)

Question

Rom Corp. began business in Year 1 and reported taxable income of

$50,000

on its Year 1 tax return. Rom's enacted tax rate is

30%

for Year 1 and future years. The following is a schedule of Rom's December 31, Year 1, temporary differences in thousands of dollars: \table[[,12/31/Y1 book basis,Future taxable (deductible) amounts],[,over (under) tax basis,Year 2,Year 3,Year 4,Year 5],[Equipment,10,

(5)

,5,5,5],[Warranty liability,

(20)

,

(10)

,

(10)

,,],[Deferred compensation liability,

(15)

,,

(5)

,,

(10)

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