Costello Corporation Reported Pretax Book Income of $500,000

Costello Corporation reported pretax book income of $500,000.During the current year,the reserve for bad debts increased by $5,000.In addition,tax depreciation exceeded book depreciation by $40,000.Finally,Costello received $3,000 of tax-exempt life insurance proceeds from the death of one of its officers.Using a tax rate of 34%,Costello's deferred income tax expense or benefit would be:

A) $11,900 net deferred tax expense.
B) $11,900 net deferred tax benefit.
C) $15,300 net deferred tax benefit.
D) $15,300 net deferred tax expense.