Lynch company had a net deferred tax asset of $68,068 at the beginning of the year, representing a net taxable temporary difference of $200,200 (taxed at 34 percent). during the year, lynch reported pretax book income of $800,800. included in the computation were favorable temporary differences of $20,200 and unfavorable temporary differences of $50,100. at the beginning of the year, congress reduced the corporate tax rate to 21 percent. lynch's deferred income tax expense or benefit for the current year would be:

Lynch's deferred income tax benefit for the current year would be $6279.

Explanation:

deferred tax expense or benefit for the current year

= ($20,200 - $50,100) 21%].

= $6279

Therefore, Lynch's deferred income tax benefit for the current year would be $6279.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.