Question

TAX-1 Problem (Situational amounts are stated in thousands) Situation 1 Situation 2 Situation 3 Situation 4 $85 $ 215 S 195 S 260 20 20 Taxable income Total Future deductible amounts Total Future taxable amounts Balance at beginning of year: Deferred tax asset Deferred tax liability The enacted tax rate is 40%. Required: 1. For each situation (1-4), determine your responses for a through f. and fill in the table appropriately: on to toxone a . Income taxes payable b. Deferred tax asset balance c. Deferred tax asset change d. Deferred tax liability balance e. Deferred tax liability change f. Income tax expense 2. For each situation, prepare the journal entry for taxes. Situation 1 Situation 2 Situation 3 Situation 4

TAX problem:

I need help with number 1 and how to calculate the answers for the table. The question asks: "For each situation, determine your responses for a. through f. and fill in the table appropriately.

The table asks for:

a. income taxes payable

b. deferred tax asset balance

c. deferred tax asset change

d. deferred tax liability balance

e. deferred tax liability change

f. income tax expense

then #2 asks for journal entries for each situation.

Answer 1

H M ctrl Situations sitnation! Situations situations $78 Боч $86 Income tax payable $34 12 Deferred tax Arbets. Balonce Deferred tox Assets Change a 12 de Deforred tay Hability balonce 12 ex - Deferred tor liability Change $76 $108 $92 by Income toy expenses $28. Journal entry in Situatoul Profit & lors ALC - for To Provision for Income tay 434 $34 i 96 Deferred tay Auset Alc-Dr To Profit & Loss ALC $6 situation Profit s dors All - Dr 892 TO Rovision for Income tax Ale to Defereed thy Liability All &86 simations profit & dors All - Dr $76 Deferred say Arsens Alc-D 88 To provision for Income tax Al to sefarred tax liability Alc 86 situationy Profit & dors All - Deferred sar Arsebs Alc-D $108. 88 $104, To Pronision for Income tax the to Deferred dan Liability All $12