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Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: SITUATION 1 2 Taxable income $33,000
Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: | |
SITUATION | 1 | 2 |
Taxable income | $33,000 | $73,000 |
Amounts at year-end: | ||
Future deductible amounts | 4,300 | 11,700 |
Future taxable amounts | 0 | 4,300 |
Balances at beginning of year, dr (cr): | ||
Deferred tax asset | $1,000 | $4,095 |
Deferred tax liability | 0 | 1,000 |
|
The enacted tax rate is 35% for both situations. |
Required: |
For each situation determine the: |
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