TB Problem 16-146 (Algo) Two independent situations are... Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: SITUATION Taxable income Amounts at year-end: Future deductible amounts Future taxable amounts Balances at beginning of year, debit (credit): Deferred tax asset Deferred tax liability The enacted tax rate is 35% for both situations. Required: For each situation determine the following: (a) Income tax payable currently (b) Deferred tax asset-balance at year-end. (c) Deferred tax asset change debit or (credit) for the year. (d) Deferred tax liability-balance at year-end (e) Deferred tax liability change debit or (credit) for the year. (f) Income tax expense for the year. ******** $ 38,000 $ 78,000 4,800 0 11, 200 4,800 $ 1,000 SITUATION 2 $ 3,920 1,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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TB Problem 16-146 (Algo) Two independent situations are...
Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by
temporary differences:
SITUATION
Taxable income
Amounts at year-end:
Future deductible amounts
Future taxable amounts
Balances at beginning of year, debit (credit):
Deferred tax asset
Deferred tax liability
The enacted tax rate is 35% for both situations.
Required:
For each situation determine the following:
(a) Income tax payable currently.
(b) Deferred tax asset-balance at year-end.
(c) Deferred tax asset change debit or (credit) for the year.
(d) Deferred tax liability-balance at year-end.
(e) Deferred tax liability change debit or (credit) for the year.
(f) Income tax expense for the year.
$ 38,000
4,800
0
$1,000
0
SITUATION
2
2
$ 78,000
11,200
4,800
$ 3,920
1,000
Transcribed Image Text:TB Problem 16-146 (Algo) Two independent situations are... Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: SITUATION Taxable income Amounts at year-end: Future deductible amounts Future taxable amounts Balances at beginning of year, debit (credit): Deferred tax asset Deferred tax liability The enacted tax rate is 35% for both situations. Required: For each situation determine the following: (a) Income tax payable currently. (b) Deferred tax asset-balance at year-end. (c) Deferred tax asset change debit or (credit) for the year. (d) Deferred tax liability-balance at year-end. (e) Deferred tax liability change debit or (credit) for the year. (f) Income tax expense for the year. $ 38,000 4,800 0 $1,000 0 SITUATION 2 2 $ 78,000 11,200 4,800 $ 3,920 1,000
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