Four 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%.
Required:
For each situation, determine the:
a. Income tax payable currently.
b. Deferred tax asset-balance.
c. Deferred tax asset-change (dr) cr.
d. Deferred tax liability-balance.
e. Deferred tax liability-change (dr) cr.
f. Income tax expense.