Ovate, inc., earns $140,000 in book income before tax and is subject to a 35% marginal federal income tax rate. ovate records a single temporary' difference. warranty expenses deducted for book purposes are $8,000 of which only $2,000 are deductible for tax purposes. determine the amount of onate's deferred tax asset or liability.

Deferred tax asset = $2100

Explanation:

Deferred tax asset will be created since deduction allowable for tax purposes in current year is in less amount, the other $6000 deduction for warranty expenses will be allowable in future years. Hence, it has deferred tax asset of [(8000-2000)x35%] $2100.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'