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  3. four independent situations are described below. e

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts...

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Accounting

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences:

($ in thousands)
Situation
1 2 3 4
Taxable income $ 137 $ 319 $ 325 $416
Future deductible amounts 28 33 33
Future taxable amounts 28 28 56
Balance(s) at beginning of the year:
Deferred tax asset 4.6 22 9.2
Deferred tax liability 4.6 4.6

The enacted tax rate is 40%.

Required:

For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2).)
Situation
1 2 3 4
a. Income tax payable currently.
b. Deferred tax assetbalance.
c. Deferred tax assetchange
d. Deferred tax liabilitybalance.
e. Deferred tax liabilitychange
f. Income tax expense.

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