Grand River Corporation reported pretax book income of $500,000. Included in the computation were favorable temporary differences of $100,000, unfavorable temporary differences of $10,000, and favorable permanent differences of $80,000. The corporation's current income tax expense or benefit would be:

Multiple Choice

• $105,000 tax benefit.

• $88,200 tax expense.

• $86,100 tax benefit.

• $69,300 tax expense.

Smith Company reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,000, unfavorable temporary differences of $20,000, and favorable permanent differences of $40,000. Smith's deferred income tax expense or benefit would be:

Multiple Choice

• net deferred tax expense of $6,300.

• net deferred tax benefit of $6,300.

• net deferred tax benefit of $14,700.

• net deferred tax expense of $14,700.