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Harrison Corporation reported pretax book income of $805,000. Tax depreciation exceeded book depreciation by $535,000. In addition, the company received $330,000 of tax-exempt municipal bond
Harrison Corporation reported pretax book income of $805,000. Tax depreciation exceeded book depreciation by $535,000. In addition, the company received $330,000 of tax-exempt municipal bond interest. The companys prior-year tax return showed taxable income of $37,000. Compute the companys deferred income tax expense or benefit assuming a tax rate of 21%.
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