MC17-4. [Learning Objective 3] Two independent situations are described here. Each situation has future deductible amounts and/or future taxable amounts produced by temporary differences: Situation Taxable income Amounts at year-end Future deductible amounts Future taxable amounts Balances at beginning of year Deferred tax asset Deferred tax liability 1 2 $40,000 $80,000 5,000 10,000 0 5,000 $ 1,000 0 $2,100 1,000 The enacted tax rate is 21% for both situations. Determine the income tax expense for the year Situation 1 a. $8,400 b. $15,950 c. $3,400 d. $12,400 Situation 2 $16,800 $16,850 $11,800 $12,800