Question
Weaver Company had a net deferred tax liability of $35,500 at the beginning of the year, representing a net taxable temporary difference of $100,300. During
Weaver Company had a net deferred tax liability of $35,500 at the beginning of the year, representing a net taxable temporary difference of $100,300. During the year, Weaver reported pretax book income of $401,200. Included in the computation were favorable temporary differences of $50,300 and unfavorable temporary differences of $20,600. During the year, the company's tax rate decreased from 34% to 30%. Weaver's deferred income tax expense or benefit for the current year would be
Net deferred tax benefit of $8,910
Net deferred tax benefit of $4,898
Net deferred tax expense of $4,898
Net deferred tax expense of $8,910
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