Weaver Company had a net deferred tax liability of $34,578 at the beginning of the year, representing a net taxable temporary difference of $101,700 (taxed at 34 percent). During the year, Weaver reported pretax book income of $406,800. Included in the computation were unfavorable temporary differences of $51,700 and favorable temporary differences of $23,400. 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:

To determine Weaver Company's deferred income tax expense or benefit for the current year, we need to consider the changes in temporary differences and the impact of the new tax rate. 1. **Initial Deferred Tax Liability:** - Beginning net deferred tax liability: $34,578 - This was based on a net taxable temporary difference of $101,700 at a 34% tax rate. 2. **Adjust for New Tax Rate:** - The new tax rate is 21%. We need to adjust the beginning deferred tax liability to reflect this change. - New deferred tax liability at 21%: $101,700 * 21% = $21,357 3. **Calculate Change in Deferred Tax Liability:** - Change due to tax rate adjustment: $34,578 (old liability) - $21,357 (new liability) = $13,221 benefit 4. **Temporary Differences for the Current Year:** - Unfavorable temporary differences: $51,700 - Favorable temporary differences: $23,400 - Net temporary difference for the year: $51,700 - $23,400 = $28,300 (net unfavorable) 5. **Deferred Tax Expense for Current Year:** - Calculate the deferred tax liability for the current year's net temporary difference at the new tax rate: $28,300 * 21% = $5,943 6. **Total Deferred Tax Expense or Benefit:

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