Smith Company Reported Pretax Book Income of $400,000

Smith Company reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,000, unfavorable temporary differences of$20,000, and favorable permanent differences of $40,000. Using a tax rate of 34%, Smith's deferred income tax expense or benefit would be:

A) Net deferred tax benefit of $10,200.
B) Net deferred tax expense of $23,800.
C) Net deferred tax benefit of $23,800.
D) Net deferred tax expense of $10,200.