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

question 80

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 (taxed at 34%) . 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. At the beginning of the year, Congress reduced the corporate tax rate to 21%. Weaver'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:

Cognitively Rigid

An individual's difficulty in adjusting their thinking or beliefs in response to new information, often leading to inflexible or unadaptive behavior.

Seeking Routine

The pursuit of regular, predictable patterns of behavior in one’s daily life to enhance stability and reduce uncertainty.

Short-term Focus

Concentrating efforts and resources on immediate goals, often at the expense of long-term objectives.

Self-efficacious

The belief in one's own ability to successfully accomplish tasks and achieve goals.