Price Corporation reported pretax book income of $600,000 in 2017.Tax depreciation exceeded book depreciation by $100,000.In addition,the reserve for warranties increased by $40,000.Price had a net deferred tax liability of $34,000 at the beginning of the year,representing a net taxable temporary difference of $100,000.During the year,the company's tax rate decreased from 34% to 30%.Compute the Company's current and deferred income tax expense or benefit for 2017.

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The Answer of Price Corporation reported pretax book income of $600,000 in 2017.Tax depreciation exceeded book depreciation by $100,000.In addition,the reserve for warranties increased by $40,000.Price had a net deferred tax liability of $34,000 at the beginning of the year,representing a net taxable temporary difference of $100,000.During the year,the company's tax rate decreased from 34% to 30%.Compute the Company's current and deferred income tax expense or benefit for 2017.

Price Corporation Reported Pretax Book Income of $600,000 in 2017