Question
Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary difference of $100,000 (taxed
Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary difference of $100,000 (taxed at 34%). During the year, Robinson reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,000 and unfavorable temporary differences of $20,000. At the beginning of the year, Congress reduced the corporate tax to 21%. Robinson's deferred income tax expense or benefit for the current year is: a. Net deferred tax expense of $6,700 b. Net deferred tax benefit of $6,300 c. Net deferred tax benefit of $6,700 d. Net deferred tax expense of $6,300
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