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Costello Corporation reported pretax book income of $501,000. During the current year, the reserve for bad debts increased by $7,000. In addition, tax depreciation exceeded

Costello Corporation reported pretax book income of $501,000. During the current year, the reserve for bad debts increased by $7,000. In addition, tax depreciation exceeded book depreciation by $41,000. Finally, Costello received $4,000 of tax-exempt life insurance proceeds from the death of one of its officers. Using a tax rate of 34%, Costello's deferred income tax expense or benefit would be:

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