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 The enacted tax rate is 25%. Required: ($ in thousands) Situation 1 2 3 4 $ 136 $ 268 $ 300 $ 416 16 20 20 16 16 80 2 8 22 22 4 For each situation, determine the following: Note: 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 "O" wherever applicable. a. Income tax payable currently. b. Deferred tax asset-ending balance. c. Deferred tax asset-change. d. Deferred tax liability-ending balance. e. Deferred tax liability-change. f. Income tax expense. Situation 1 2 3
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 The enacted tax rate is 25%. Required: ($ in thousands) Situation 1 2 3 4 $ 136 $ 268 $ 300 $ 416 16 20 20 16 16 80 2 8 22 22 4 For each situation, determine the following: Note: 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 "O" wherever applicable. a. Income tax payable currently. b. Deferred tax asset-ending balance. c. Deferred tax asset-change. d. Deferred tax liability-ending balance. e. Deferred tax liability-change. f. Income tax expense. Situation 1 2 3
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
The enacted tax rate is 25%.
Required:
($ in thousands)
Situation
1
2
3
4
$ 136
$ 268
$ 300
$ 416
16
20
20
16
16
80
2
8
22
22
2
4
For each situation, determine the following:
Note: 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 "O" wherever applicable.
a. Income tax payable currently.
b. Deferred tax asset-ending balance.
c. Deferred tax asset-change.
d. Deferred tax liability-ending balance.
e. Deferred tax liability-change.
f. Income tax expense.
Situation
1
2
3
4
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