Situation 1 2 Taxable Income 40,000 80,000 Amounts at year-end Future Deductible amt 5,000 10,000 Future at Beg of year 0.0 5,000 Bal at Beg of year Deferred tax asset 1,000 4,000 Deferred tax liab 0.0 1,000 Enacted state and Federal tax rate is 25%. Determine the change in the deferred tax asset balance for the year. options are a 5,000 and 10,000 b 250 and 1,500 c 1,250 and 2,500 d 0 and 0
I have two similar Becker review questions that are part of my homework. I can't find any solutions that match my options to check my work. The two checks are Two independent situations are described below. Each situation has future deductibel and/or future taxable amounts producted by temporary differences.
Situation 1 2
Taxable Income 40,000 80,000
Amounts at year-end
Future Deductible amt 5,000 10,000
Future at Beg of year 0.0 5,000
Bal at Beg of year
Deferred tax liab 0.0 1,000
Enacted state and Federal tax rate is 25%. Determine the change in the deferred tax asset balance for the year.
options are
a 5,000 and 10,000
b 250 and 1,500
c 1,250 and 2,500
d 0 and 0
I chose answer b
Are you able to confirm if I am correct or if I need to continue working the problem?
| PARTICULAR | SITUATION 1 | SITUATION 2 |
| FUTURE DEDUCTIBLE AMOUNT | 5,000 | 10,000 |
| TAX RATE = 25 % | 25% | 25% |
| DEFERRED TAX ASSET AT END OF THE YEAR | 1,250 | 2,500 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
