Question

Robinson Company had a net deferred tax liability of $34,748 at the beginning of the year, representing a net taxable temporary difference of $102,200 (taxed at 34%). During the year, Robinson reported pretax book income of $402,200. Included in the computation were favorable temporary differences of $52,200 and unfavorable temporary differences of $21,100. During the year, Congress reduced the corporate tax rate from 34% to 21%. Robinson's deferred income tax expense or benefit for the current year would be:

Answer 1

The deferred income tax expense or benefit for the current year would be $6,531

Step-by-step explanation:

The computation of the deferred income tax expense or benefit for the current year is shown below:

= (Favorable temporary differences - unfavorable temporary differences) × reduced percentage

= ($52,200 - $21,100) × 21%

= $31,100 × 21%

= $6,531

All other information which is given in the question is not relevant. Hence, ignored it