- Business
- Accounting
- 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
