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Weaver Company had a net deferred tax liability of $38,500 at the beginning of the year, representing a net taxable temporary difference of $100,900 (taxed
Weaver Company had a net deferred tax liability of $38,500 at the beginning of the year, representing a net taxable temporary difference of $100,900 (taxed at 34%). During the year, Weaver reported pretax book income of$403,600. Included in the computation were favorable temporary differences of $50,900 and unfavorable temporary differences of $21,800. At the beginning of the year, Congress reduced the corporate tax rate to 21%. Weaver's deferred income tax expense or benefit for the current year would be Multiple Choice Net deferred tax benefit of $6,111 Net deferred tax expense of $6,111. Net deferred tax benefit of $7,006. Net deferred tax expense of $7,006 Lynch Company had a net deferred tax asset of $69,088 at the beginning of the year, representing a net taxable temporary difference of $203,200 (taxed at 34%). During the year, Lynch reported pretax book income of $812,800. Included in the computation were favorable temporary differences of $23,200 and unfavorable temporary differences of $51,600. At the beginning of the year, Congress reduced the corporate tax rate to 21%. Lynch's deferred income tax expense or benefit for the current year would be Multiple Choice Net deferred tax benefit of $5,964 Net deferred tax expense of $5,964 Net deferred tax benefit of $32,380 Net deferred tax expense of $32,380
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