Question
Weaver Company had a net deferred tax liability of $34,238 at the beginning of the year, representing a net taxable temporary difference of $100,700 (taxed
Weaver Company had a net deferred tax liability of $34,238 at the beginning of the year, representing a net taxable temporary difference of $100,700 (taxed at 34 percent). During the year, Weaver reported pretax book income of $402,800. Included in the computation were unfavorable temporary differences of $50,700 and favorable temporary differences of $21,400. At the beginning of the year, Congress reduced the corporate tax rate to 21 percent. Weaver's deferred income tax expense or benefit for the current year would be:
Multiple Choice
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Net deferred tax benefit of $6,153.
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Net deferred tax expense of $6,153.
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Net deferred tax benefit of $19,244.
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Net deferred tax expense of $19,244.
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