Four independent situations are described below. Each involves future deductible
ID: 2590728 • Letter: F
Question
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences ($ in thousands) Situation 2 3 $113 $271 $265 27 4 $344 Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: 27 3.4 16 3.4 6.8 Deferred tax asset Deferred tax liability 3.4 The enacted tax rate is 40% Required: 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).) Situation 1 2 4 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.Explanation / Answer
Situation 1
Situation 2
Situation 3
Situation 4
a.
Taxable income
113000
271000
265000
344000
Tax Rate
40%
40%
40%
40%
Income Tax payable currently
45200
108400
106000
137600
b.
Future deductible amount
22000
27000
27000
Tax Rate
40%
40%
40%
Deferred Tax Asset balance
8800
10800
10800
c.
Deferred tax asset beginning balance
3400
16000
6800
Deferred tax asset- Change
5400
5200
4000
d.
Future taxable amounts
0
22000
44000
44000
Tax Rate
40%
40%
40%
40%
Deferred tax liability balance
0
8800
17600
17600
e.
Deferred tax liability beginning balance
0
3400
3400
Deferred tax liability Change
5400
14200
No change
f.
Income tax payable
45200
108400
106000
137600
Change in deferred tax asset
5400
0
5200
4000
Change in deferred tax liability
5400
14200
No change
39800
103000
86600
133600
Situation 1
Situation 2
Situation 3
Situation 4
a.
Taxable income
113000
271000
265000
344000
Tax Rate
40%
40%
40%
40%
Income Tax payable currently
45200
108400
106000
137600
b.
Future deductible amount
22000
27000
27000
Tax Rate
40%
40%
40%
Deferred Tax Asset balance
8800
10800
10800
c.
Deferred tax asset beginning balance
3400
16000
6800
Deferred tax asset- Change
5400
5200
4000
d.
Future taxable amounts
0
22000
44000
44000
Tax Rate
40%
40%
40%
40%
Deferred tax liability balance
0
8800
17600
17600
e.
Deferred tax liability beginning balance
0
3400
3400
Deferred tax liability Change
5400
14200
No change
f.
Income tax payable
45200
108400
106000
137600
Change in deferred tax asset
5400
0
5200
4000
Change in deferred tax liability
5400
14200
No change
39800
103000
86600
133600
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.