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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
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 | $ | 101 | $ | 247 | $ | 235 | $ | 308 | ||||||||
Future deductible amounts | 19 | 24 | 24 | |||||||||||||
Future taxable amounts | 19 | 19 | 38 | |||||||||||||
Balance(s) at beginning of the year: | ||||||||||||||||
Deferred tax asset | 2.8 | 13 | 5.6 | |||||||||||||
Deferred tax liability | 2.8 | 2.8 | ||||||||||||||
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). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.)
Situation 1 2 3 4 a. Income tax payable currently. b. Deferred tax asset-balance. c. Deferred tax asset-change d. Deferred tax liability-balance. e. Deferred tax liability-change f.Income tax expense Situation 1 2 3 4 a. Income tax payable currently. b. Deferred tax asset-balance. c. Deferred tax asset-change d. Deferred tax liability-balance. e. Deferred tax liability-change f.Income tax expense
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