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

question 2

Multiple Choice

Weaver 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.During the year,Weaver 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,the company's tax rate decreased from 34% to 30%.Weaver's deferred income tax expense or benefit for the current year would be:

• A) Net deferred tax benefit of $9,000.
• B) Net deferred tax expense of $9,000.
• C) Net deferred tax benefit of $5,000.
• D) Net deferred tax expense of $5,000.

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Definitions:

Markdown

A reduction from the original or retail price of goods to increase sales or clear inventory.

Competitor

An individual or company that competes against others for the same market share or audience in an industry.

Quick Sale

A quick sale refers to the rapid sale of assets, typically real estate, often at a lower price to ensure a fast transaction.

Sale Price

The final price at which an item is sold after any discounts or deductions have been applied.