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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