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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:

image text in transcribed
SITUATION 1 2 (a.) Income tax payable currently (b.) Deferred tax asset - balance at year-end. (c.) Deferred tax asset change dr or (cr) for the year. (d.) Deferred tax liability-balance at year-end. e.) Deferred tax liability change dr or (cr) for the year. f.) Income tax expense for the year

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