Li Corporation reported pretax book income of $670,000. Tax depreciation exceeded book depreciation by $414,000. Li's beginning book (tax) basis in its fixed assets was $1,970,000 ($1,756,000) and its ending book (tax) basis is $1,870,000 ($1,284,000). In addition, the company received $370,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $42,000. Assuming a tax rate of 21 percent, compute the company's deferred income tax expense or benefit.

Li Corporation reported pretax book income of $670,000. Tax depreciation exceeded book depreciation by $414,000. Li's beginning book (tax) basis in its fixed assets was $1,970,000($1,756,000) and its ending book (tax) basis is $1,870,000($1,284,000). In addition, the company received $370,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $42,000. Assuming a tax rate of 21 percent, compute the company's deferred income tax expense or benefit. Note: Enter all numbers as a positive number and indicate whether a deferred tax expense or a deferred tax benefit