70.2K

Verified Solution

Link Copied!

(I dont know if the selected answers are correct)

Lynch Company had a net deferred tax asset of $68,000 at the beginning of the year, representing a net deductible temporary difference of $200,000 (taxed at 34 percent). During the year, Lynch reported pretax book income of $800,000. Included in the computation were favorable temporary differences of $20,000 and unfavorable temporary differences of $50,000. At the beginning of the year, Congress reduced the corporate tax rate to 21 percent Lynch's deferred income tax expense or benefit for the current year would be: Multiple Choice 3) Net deferred tax benefit of $6,300. Net deferred tax expense of $6,300. Net deferred tax benefit of $32,300. Net deferred tax expense of $32,300. 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 percent). During the year, Weaver reported pretax book income of $400,000. Included in the computation were unfavorable temporary differences of $50,000 and favorable temporary differences of $20,000. At the beginning of the year, Congress reduced the corporate tax rate to 21 percent Weaver's deferred income tax expense or benefit for the current year would be: Multiple Choice Net deferred tax benefit of $6.300. Net deferred tax expense of $6,300. o ooo Net deferred tax benefit of $19,300. Net deferred tax expense of $19,300

Answer & Explanation Solved by verified expert

See Answer