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 $ 137 $ 319 $ 325 $416 Future deductibleamounts 28 33 33 Future taxableamounts 28 28 56 Balance(s) atbeginning of the year: Deferred tax asset 4.6 22 9.2 Deferred tax liability 4.6 4.6
The enacted tax rate is40%.
Required: For each situation, determine the following: (Enter youranswers in thousands rounded to one decimal place (i.e. 1,200should be entered as 1.2).)
Situation 1 2 3 4 a. Incometax payable currently. b. Deferredtax assetâbalance. c. Deferredtax assetâchange d. Deferredtax liabilityâbalance. e. Deferredtax liabilityâchange f. Incometax expense.
Four independent situations are described below. Each involvesfuture deductible amounts and/or future taxable amounts produced bytemporary differences: |
| ($ in thousands) | |||||||||||
| Situation | |||||||||||
| 1 | 2 | 3 | 4 | ||||||||
| Taxable income | $ | 137 | $ | 319 | $ | 325 | $416 | ||||
| Future deductibleamounts | 28 | 33 | 33 | ||||||||
| Future taxableamounts | 28 | 28 | 56 | ||||||||
| Balance(s) atbeginning of the year: | |||||||||||
| Deferred tax asset | 4.6 | 22 | 9.2 | ||||||||
| Deferred tax liability | 4.6 | 4.6 | |||||||||
| The enacted tax rate is40%. |
| Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||
For each situation, determine the following: (Enter youranswers in thousands rounded to one decimal place (i.e. 1,200should be entered as 1.2).) | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Related questions
Four independent situations are described below. Each involvesfuture deductible amounts and/or future taxable amounts produced bytemporary differences: |
| ($ 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 |
| Situationnumbers in thousands | |||||||||||
| 1 | 2 | 3 | 4 | ||||||||
| Taxable income | $ | 153 | $ | 351 | $ | 365 | $464 | ||||
| Future deductibleamounts | 32 | 37 | 37 | ||||||||
| Future taxableamounts | 32 | 32 | 64 | ||||||||
| Balance(s) atbeginning of the year: | |||||||||||
| Deferred tax asset | 5.4 | 26 | 10.8 | ||||||||
| Deferred tax liability | 5.4 | 5.4 | |||||||||
| 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).) |
| Year 1 Year 2 Year 3 Year 4 Income tax payble Deferred tax assets- Balance Deferred tax assets- Changes Deferred tax Liabilitiess- Balance Deferred tac Liabilities- Changes Income tax Expense |
