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

question 50

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.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,the company's tax rate increased from 34% to 35%.Robinson's deferred income tax expense or benefit for the current year would be:

• A) Net deferred tax benefit of $10,500.
• B) Net deferred tax expense of $10,500.
• C) Net deferred tax benefit of $11,500.
• D) Net deferred tax expense of $11,500.

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Definitions:

Psychotropic Medications

Drugs that affect a person's mental state and are used to treat psychiatric disorders.

Bipolar Disorder

A psychological disorder marked by severe fluctuations in mood, encompassing intense emotional peaks (mania or hypomania) and valleys (depression).

Cognitive-behavioral Therapy

a form of psychotherapy that focuses on modifying dysfunctional emotions, behaviors, and thoughts by challenging and changing unhelpful beliefs.

Active Placebo

A placebo used in clinical trials that mimics some of the side effects of the drug being tested without containing the active ingredients.