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.