Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: 1 2

Taxable Income 650 370

Future deductible amounts 20 90

Future taxable amounts 80 40

Balance(s) at the beginning of the year:

Deferred tax asset 15 9

Deferred tax liability 8 28

The current year tax rate is 20%. Recent tax legislation will change the tax rate from the current 20% to 25% beginning next year. Use brackets () to denote a credit for the changes. Please complete the following table (don't round): 1 2

Deferred tax asset -

change Deferred tax liability -

change Income tax expense