Robinson company has a net deferred tax liability of $35,360 at the beginning of the year, representing a net taxable temporary difference of $104,000 (taxed at 34%). During the year, Robinson reported pretax book income of $404,000. Included in the computation were favorable temporary differences of $54,000 and unfavorable temporary differences of $22,000. During the year, Congress reduced the corporate tax rate from 34% to 21%. Robinson's deferred income tax expense or benefit for the current year would be: Multiple Choice ___ Net deferred tax benefit of $6,720. ___ Net deferred tax expense of $6,720. ___ Net deferred tax benefit of $6,800. ___ Net deferred taxx expense of $6,800.
Robinson company has a net
Multiple Choice
___ Net deferred tax benefit of $6,720.
___ Net deferred tax expense of $6,720.
___ Net deferred tax benefit of $6,800.
___ Net deferred taxx expense of $6,800.
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