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28 Sep 2019
Four independent situations are described below. Each involvesfuture deductible amounts and/or future taxable amounts produced bytemporary differences:
($ in thousands) Situation 1 2 3 4 Taxable income $ 145 $ 335 $ 345 $440 Future deductibleamounts 30 35 35 Future taxableamounts 30 30 60 Balance(s) atbeginning of the year: Deferred tax asset 5 24 10 Deferred tax liability 5 5
The enacted tax rate is40%.
Required: For each situation, determine the following: (Enter youranswers in thousands rounded to one decimal place (i.e. 1,200should be entered as 1.2).)
Create a chart For situation 1-4 with the following:
Income tax paybale currently,
Deferred tax asset- Balance,
Deferred tax asset-Change,
Deferred tax liablilty- Balance and Change,
and income tax expense.
Four independent situations are described below. Each involvesfuture deductible amounts and/or future taxable amounts produced bytemporary differences: |
($ in thousands) | |||||||||||
Situation | |||||||||||
1 | 2 | 3 | 4 | ||||||||
Taxable income | $ | 145 | $ | 335 | $ | 345 | $440 | ||||
Future deductibleamounts | 30 | 35 | 35 | ||||||||
Future taxableamounts | 30 | 30 | 60 | ||||||||
Balance(s) atbeginning of the year: | |||||||||||
Deferred tax asset | 5 | 24 | 10 | ||||||||
Deferred tax liability | 5 | 5 | |||||||||
The enacted tax rate is40%. |
Required: |
For each situation, determine the following: (Enter youranswers in thousands rounded to one decimal place (i.e. 1,200should be entered as 1.2).) Create a chart For situation 1-4 with the following: Income tax paybale currently, Deferred tax asset- Balance, Deferred tax asset-Change, Deferred tax liablilty- Balance and Change, and income tax expense. |
Casey DurganLv2
28 Sep 2019