Robinson Company Had a Net Deferred Tax Liability of $35,360

question 81

Multiple Choice

Robinson Company had 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 percent) . 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 to 21 percent. Robinson's deferred income tax expense or benefit for the current year would be:

• A)Net deferred tax benefit of $6,720.
• B)Net deferred tax expense of $6,720.
• C)Net deferred tax benefit of $6,800.
• D)Net deferred tax expense of $6,800.

---

Definitions:

Acid Content

A measure of the acidity level in a substance, often important in chemical reactions, food science, and battery technology.

Standard of Care

The degree of prudence and caution required of an individual who is under a duty of care.

Chemical Reaction

A process that leads to the transformation of one set of chemical substances to another, involving rearrangements of atoms and changes in their chemical properties or composition.

Legal Action

A formal proceeding in a court of law where one party sues another for a remedy or relief.