Answer: $11220
Explanation:
Based on the scenario in the question, first, we.have to calculate the difference in net tax which will be:
= $42000 - $9000
= $33,000
Using a tax rate of let's say 34%, Costello's deferred income tax expense would be:
= $33,000 × 34%
= $33000 × 0.34
= $11220