Four Independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset. Deferred tax liability 1 $ 136 16 2 ($ in thousands) Situation 2 3 $ 268 $300 16 8 20 16 22 2 4 $416 20 80 4 The enacted tax rate is 25%. Required: For each situation, determine the following: Note: Enter your answers in thousands rounded to one decimal place (l.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.
Four Independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset. Deferred tax liability 1 $ 136 16 2 ($ in thousands) Situation 2 3 $ 268 $300 16 8 20 16 22 2 4 $416 20 80 4 The enacted tax rate is 25%. Required: For each situation, determine the following: Note: Enter your answers in thousands rounded to one decimal place (l.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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Four Independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced
by temporary differences:
Taxable income
Future deductible amounts
Future taxable amounts
Balance(s) at beginning of the year:
Deferred tax asset
Deferred tax liability
a. Income tax payable currently.
b. Deferred tax asset-ending balance.
1
$ 136
16
c. Deferred tax asset-change.
d. Deferred tax liability-ending balance.
e. Deferred tax liability-change.
f. Income tax expense.
2
($ in thousands)
Situation
2
2
$ 268
16
8
Situation
3
$ 300
20
16
The enacted tax rate is 25%.
Required:
For each situation, determine the following:
Note: Enter your answers in thousands rounded to one decimal place (l.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.
3
22
2
4
$416
20
80
4
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