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

question 12

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 (taxed at 34%) . 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, Congress reduced the corporate tax rate to 34%. Robinson's deferred income tax expense or benefit for the current year would be:

• A) Net deferred tax benefit of $6,300.
• B) Net deferred tax expense of $6,300.
• C) Net deferred tax benefit of $6,700.
• D) Net deferred tax expense of $6,700.

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Definitions:

Knowledge Base

A structured repository of information, often used in AI and customer support, that enables the retrieval of knowledge.

Clinical Research

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