Reference no: EM132612971

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 4 Taxable income $ 100 $ 232 $ 228 $308. Future deductible amounts 16 0 20 20. Future taxable amounts 0 16 16 44. Balance(s) at beginning of the year: Deferred tax asset 2 0 13 4. Deferred tax liability 0 8 2 0. The enacted tax rate is 25%.

Required:

Question i: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2).

a. Income tax payable currently.

b. Deferred tax asset-balance.

c. Deferred tax asset-change

d. Deferred tax liability-balance.

e. Deferred tax liability-change

f. Income tax expense.