Robinson Company Had a Net Deferred Tax Liability of $34,000

question 125

Multiple Choice

Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary difference of $100,000 (taxed at 34 percent) . During the year, Robinson reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,000 and unfavorable temporary differences of $20,000. During the year, Congress reduced the corporate tax rate to 21 percent. Robinson's deferred income tax expense or benefit for the current year would be:

• A)Net deferred tax benefit of $6,300.
• B)Net deferred tax expense of $6,300.
• C)Net deferred tax benefit of $6,700.
• D)Net deferred tax expense of $6,700.

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Definitions:

Duty To Retreat

A legal principle that requires a person to attempt to avoid conflict by retreating from an attacker if safely possible, before using force in self-defense.

Own Home

Refers to possessing or having ownership of one's place of residence.

Evil Motive

A wrongful intention that is often the driving force behind harmful actions or crimes.

Criminal Act

An action or omission that constitutes an offense that may be prosecuted by the state and is punishable by law.