Price Corporation reported pretax book income of $600,000 in 2018. 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. At the beginning of the year, Congress reduced the corporate tax rate to 21%. Compute the company's current and deferred income tax expense or benefit for 2018.

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The Answer of Price Corporation reported pretax book income of $600,000 in 2018. 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. At the beginning of the year, Congress reduced the corporate tax rate to 21%. Compute the company's current and deferred income tax expense or benefit for 2018.

Price Corporation Reported Pretax Book Income of $600,000 in 2018