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  3. 2 costello corporation reported pretax book income

2 Costello Corporation reported pretax book income of $500,000. During the current year, the reserve...

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2 Costello Corporation reported pretax book income of $500,000. During the current year, the reserve for bad debts increased by $5.000. In addition, tax depreciation exceeded book depreciation by $40,000. Finally, Costello received $3,000 of tax-exempt life insurance proceeds from the death of one of its officers. Costello's deferred income tax expense or benefit would be: 5 points Multiple Choice eBook $7,350 net deferred tax expense. References $7,350 net deferred tax benefit. $7,950 net deferred tax benefit $7,980 net deferred tax expense

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