McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 64

Harrison Corporation reported pre-tax book income of $600,000.Tax depreciation exceeded book depreciation by $400,000.In addition, the company received $300,000 of tax-exempt municipal bond interest.The company's prior year tax return showed taxable income of $50,000.Assuming a tax rate of 34%, compute the company's deferred income tax expense or benefit.