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Business, 08.04.2020 00:10 paolaviviana
Lynch Company had a net deferred tax asset of $69,088 at the beginning of the year, representing a net deductible temporary difference of $203,200 (taxed at 34 percent). During the year, Lynch reported pretax book income of $812,800. Included in the computation were favorable temporary differences of $23,200 and unfavorable temporary differences of $51,600. 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: rev: 12_05_2019_QC_CS-192775
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