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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 produced...

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Accounting

Four independent situations are described below. Each involvesfuture deductible amounts and/or future taxable amounts produced bytemporary differences: ($ in thousands) Situation 1 2 3 4 Taxableincome $ 137 $ 319 $ 325 $ 416 Future deductible amounts 28 33 33Future taxable amounts 28 28 56 Balance(s) at beginning of theyear: Deferred tax asset 4.6 22 9.2 Deferred tax liability 4.6 4.6The enacted tax rate is 40%. Required: For each situation,determine the following:

1234
a.Income tax payable currently.$54.8selected answer correct$127.6selected answer correct$130.0selected answer correct$166.4selected answer correct
b.Deferred tax asset—balance.$0.3selected answer incorrect$0.0selected answer correct$35.2selected answer incorrect$22.4selected answer incorrect
c.Deferred tax asset—change$11.2selected answer incorrect$0.0selected answer correct$13.2selected answer incorrect$13.2selected answer incorrect
d.Deferred tax liability—balance.$0.0selected answer correct$15.8selected answer incorrect$15.8selected answer incorrect$0.0selected answer incorrect
e.Deferred tax liability—change$0.0selected answer correct$11.2selected answer incorrect$11.2selected answer incorrect$22.4selected answer correct
f.Income tax expense.

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