Smith Company reported pretax book income of $408,000. Included in the computation were favorable temporary differences of $51,600, unfavorable temporary differences of $20,800, and favorable permanent differences of $40,800. Using a tax rate of 34%, Smith's deferred income tax expense or benefit would be:

Net deferred tax benefit of $24,616.

Net deferred tax expense of $24,616.

Net deferred tax benefit of $10,472.

Net deferred tax expense of $10,472.