Costello Corporation reported pretax book Income of $501,600. During the current year, the reserve for bad debts increased by $8,200. In addition, tax depreciation exceeded book depreciation by $41,600. Finally, Costello received $3,800 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 $7,014 net deferred tax expense. $7,014 net deferred tax benefit. $7774 net deferred tax benefit 0 $7812 net deferred tax expense