Evergreen Biotech Ltd. incurred research and development cos…
Evergreen Biotech Ltd. incurred research and development costs of $40,000 during 2026. The entire amount was expensed for accounting purposes, so no related asset appears on the statement of financial position. For tax purposes, the $40,000 will be deductible in 2027. The enacted future income tax rate is 25%. What are the tax base of the research and development costs and the related deferred tax amount at December 31, 2026?