Two independent situations are described below.Each involves future deductible amounts and/or future taxable amounts produced by temporary differences:

The enacted tax rate is 40% for both situations.
Required:
For each situation determine the:
(a. )Income tax payable currently.
(b. )Deferred tax asset - balance at year-end.
(c. )Deferred tax asset change dr or (cr)for the year.
(d. )Deferred tax liability - balance at year-end.
(e. )Deferred tax liability change dr or (cr)for the year.
(f. )Income tax expense for the year.

Question

Two independent situations are described below.Each involves future deductible amounts and/or future taxable amounts produced by temporary differences:
  
The enacted tax rate is 40% for both situations.
Required:
For each situation determine the:
(a. )Income tax payable currently.
(b. )Deferred tax asset - balance at year-end.
(c. )Deferred tax asset change dr or (cr)for the year.
(d. )Deferred tax liability - balance at year-end.
(e. )Deferred tax liability change dr or (cr)for the year.
(f. )Income tax expense for the year.

Quizplus · Accepted Answer

The Answer of Two independent situations are described below.Each involves future deductible amounts and/or future taxable amounts produced by temporary differences:
  
The enacted tax rate is 40% for both situations.
Required:
For each situation determine the:
(a. )Income tax payable currently.
(b. )Deferred tax asset - balance at year-end.
(c. )Deferred tax asset change dr or (cr)for the year.
(d. )Deferred tax liability - balance at year-end.
(e. )Deferred tax liability change dr or (cr)for the year.
(f. )Income tax expense for the year.

Two Independent Situations Are Described Below