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Question
Robinson Company had a net deferred tax liability of $34,612 at the beginning of the year, representing a net taxable temporary difference of $101,800 (taxed at 34%). During the year, Robinson reported pretax book income of $401,800.
Included in the computation were favorable temporary differences of $51,800 and unfavorable temporary differences of $20,900.
During the year, Congress reduced the corporate tax rate from 34% to 21%. Robinson's deferred income tax expense or benefit for the current year would be?
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