1. Business
  2. Accounting
  3. weaver company had a net deferred tax liability of 39000...

Question: weaver company had a net deferred tax liability of 39000...

Question details

Weaver Company had a net deferred tax liability of $39,000 at the beginning of the year, representing a net taxable temporary difference of $101,000 (taxed at 34%). During the year, Weaver reported pretax book income of $404,000. Included in the computation were favorable temporary differences of $51,000 and unfavorable temporary differences of $22,000. 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:

Multiple Choice

  • Net deferred tax benefit of $7,040.

  • Net deferred tax expense of $6,090.

  • Net deferred tax benefit of $6,090.

  • Net deferred tax expense of $7,040.

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution