Question

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	$	128			$	260			$	284			$	392
Future deductible amounts		16								20				20
Future taxable amounts						16				16				72
Balance(s) at beginning of the year:
Deferred tax asset		2								20				4
Deferred tax liability						8				2

The enacted tax rate is 25%.

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). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.)

Answer 1