Costello Corporation reported pretax book income of $500,700. During the current year, the reserve for bad debts increased by $6,400. In addition, tax depreciation exceeded book depreciation by $40,700. Finally, Costello received $3,350 of tax-exempt life insurance proceeds from the death of one of its officers. Costello's deferred income tax expense or benefit would be: Multiple Choice $7,203 net deferred tax expense. O $7,203 net deferred tax benefit. o $7,873 net deferred tax benefit. o $7,907 net deferred tax expense. o