Farm Corporation reported pretax book loss of $500,000 in 2014. Tax depreciation exceeded book depreciation by $100,000. In addition, Farm received prepaid income of $50,000, which was included on its tax return but was not included in the book loss. Farm had $0 taxable income in 2013 and 2012. Assuming a tax rate of 34%, compute the Company's deferred income tax expense or benefit for 2014.

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The Answer of Farm Corporation reported pretax book loss of $500,000 in 2014. Tax depreciation exceeded book depreciation by $100,000. In addition, Farm received prepaid income of $50,000, which was included on its tax return but was not included in the book loss. Farm had $0 taxable income in 2013 and 2012. Assuming a tax rate of 34%, compute the Company's deferred income tax expense or benefit for 2014.

Farm Corporation Reported Pretax Book Loss of $500,000 in 2014