Answer:
$10,200
Explanation:
The computation of the deferred income tax expense or benefit is shown below:
Favorable temporary difference = $50,000
Less: Unfavorable temporary difference -$20,000
Net favorable temporary difference $30,000
We assume the tax rate is of 34%
So, the deferred tax expense is
= $30,000 × 34%
= $10,200
By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above
Answer:
Net deferred tax expense of $6,300
Explanation:
Whenever the tax rate isn't provided it's 21%.
$50,000 – $20,000 = $30,000 net favorable (taxable) difference × 21%.
