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Harrison Corporation reported pretax book income of $425,000. Tax depreciation exceeded book depreciation by $410,000. In addition, the company received $165,000 of tax-exempt municipal bond
Harrison Corporation reported pretax book income of $425,000. Tax depreciation exceeded book depreciation by $410,000. In addition, the company received $165,000 of tax-exempt municipal bond interest. The companys prior year tax return showed taxable income of $103,000. Assuming a tax rate of 34 percent, compute the companys deferred income tax expense or benefit.
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