Answer:
Net deferred tax benefit of $20,452
Explanation:
[( $23,200-$51,600 ) ×21%]
=$28,400×21%
=$5,964 net deferred tax benefit for the current year
($203,200×(34%-21%)13%) = $26,416 reduction in the deferred tax asset)
(34%-21%)
=$26,416-$5,964 = $20,452
Net deferred tax benefit of $20,452
The net deferred tax benefit for the current year is $5,964 [( $23,200-$51,600 ) ×21%].
The beginning balance in the deferred tax asset account must be adjusted downward to reflect the change in the tax rate by 13 percentage point ($203,200×13%) = $26,416 reduction in the deferred tax asset)
