Weaver Company Had a Net Deferred Tax Liability of $34,476

question 118

Multiple Choice

Weaver Company had a net deferred tax liability of $34,476 at the beginning of the year, representing a net taxable temporary difference of $101,400 (taxed at 34 percent) . During the year, Weaver reported pretax book income of $405,600. Included in the computation were unfavorable temporary differences of $51,400 and favorable temporary differences of $22,800. At the beginning of the year, Congress reduced the corporate tax rate to 21 percent. Weaver's deferred income tax expense or benefit for the current year would be:

• A) Net deferred tax benefit of $6,006.
• B) Net deferred tax expense of $6,006.
• C) Net deferred tax benefit of $19,188.
• D) Net deferred tax expense of $19,188.

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Definitions:

Acid Catalyst

A substance that increases the rate of a chemical reaction through donation of protons (H+ ions) without undergoing any permanent chemical change itself.

Acyclic Compound

A chemical compound that does not contain any rings in its structure, consisting of linear or branched chains of atoms.

Imine

A compound characterized by a nitrogen atom double-bonded to a carbon atom, often resulting from the condensation of a primary amine and an aldehyde or ketone.

Reagents

Substances or compounds added in a chemical reaction to bring about a reaction or to see if a reaction occurs.