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Li Corporation reported pretax book income of $695,000. Tax depreciation exceeded book depreciation...

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Accounting

Li Corporation reported pretax book income of $695,000. Tax depreciation exceeded book depreciation by $419,000. L's beginning book (tax) basis in its fixed assets was ) and its ending book (tax) basis is $1,895,000($1,314,000). In addition, the company received $395,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $64,000. Assuming a tax rate of 21 percent, compute the company's deferred income tax expense or benefit. Note: Enter all numbers as a positive number and indicate whether a deferred tax expense or a deferred tax benefit.
Answer is complete but not entirely correct.
Deferred income tax expense
$
(31,900)
image

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