1) Delta began business in 2015 and reported a $100,000 Net Operating Loss (NOL) for the current year. It has no permanent or temporary book-tax differences; thus, its taxable loss equals its book loss of $100,000. Delta will carry forward its $100,000 NOL to future years. The tax rate is 35%. We determined that Delta has a DTA of $35,000 related to the $100,000 NOL in 2015. In 2016, it decides to apply (use up) the DTA (carryforward). The company has book income of $200,000. No book/tax differences. So, Delta reports taxable income of $200,000 before considering the effect of its NOL.

How much is I.T. payable for 2016?

What is the change in the DTA for the period 2016?

What is the balance of the DTA in the 2016 Balance Sheet?

What is the 2016 JE for I.T Expense?