The situation below involves future deductible amounts and$/$or future taxable amounts produced by temporary differences:

SITUATION

Taxable income

$$100,000$

Amounts at year$-$end:

Future deductible amounts

Future taxable amountsBalances at beginning of year:Deferred tax asset$$0$Deferred tax liability

$2,000$

The enacted tax rate is $25\%$ for both situations.

Determine the following. Show well$-$labeled computations.

$($a$)$ Income tax payable currently.

$($b$)$ Deferred tax asset $-$ balance at year$-$end.

$($c$)$ Deferred tax asset change debit or $($credit$)$ for the year.

$($d$)$ Deferred tax liability $-$ balance at year$-$end.

$($e$)$ Deferred tax liability change debit or $($credit$)$ for the year.

$($f$)$ Income tax expense for the year.