TB MC Qu. 17-58 Lynch Company had a net deferred tax asset of... Lynch Company had a net deferred tax asset of $68,136 at the beginning of the year, representing a net taxable temporary difference of $200,400 (taxed at 34 percent). During the year, Lynch reported pretax book income of $801,600. Included in the computation were favorable temporary differences of $20,400 and unfavorable temporary differences of $50,200. At the beginning of the year, Congress reduced the corporate tax rate to 21 percent. Lynch's deferred income tax expense or benefit for the current year would be: Multiple Choice Net deferred tax benefit of $6,258. o Net deferred tax expense of $6,258. o Net deferred tax benefit of $32,310. o o Net deferred tax expense of $32,310