Question
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 $ 161 $ 367 $ 385 $ 488 Future deductible amounts 34 39 39 Future taxable amounts 34 34 68 Balance(s) at beginning of the year: Deferred tax asset 5.8 28 11.6 Deferred tax liability 5.8 5.8 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.)
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