A deferred tax asset would result if

A) a company recorded a tax penalty in 2010 that it paid in 2011
B) a company recorded more taxable depreciation in 2010 for an asset acquired in 2008
C) a company recorded more warranty expense in 2010 than cash paid in 2010 for warranty repairs
D) a company recorded more interest expense in 2010 than cash paid in 2010 for interest

A deferred tax asset occurs when a company pays more in taxes according to its financial statements than it owes according to its tax return. This can happen due to temporary differences between the accounting and tax treatments of certain items. In choice C, recording more warranty expense than the cash paid for warranty repairs in the financial statements would reduce taxable income, leading to a temporary difference that results in a deferred tax asset. This is because the company is recognizing an expense for accounting purposes before it is recognized for tax purposes, which will lead to a future tax benefit when the expense is recognized for tax purposes.