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

SITUATION	1		2
Taxable income	$	33,000	$	73,000
Amounts at year-end:
Future deductible amounts		4,300		11,700
Future taxable amounts		0		4,300
Balances at beginning of year, dr (cr):
Deferred tax asset	$	1,000	$	4,095
Deferred tax liability		0		1,000

The enacted tax rate is 35% for both situations. Required: For each situation determine the:

		SITUATION
		1	2
(a.)	Income tax payable currently.
(b.)	Deferred tax asset - balance at year-end.
(c.)	Deferred tax asset change dr or (cr) for the year.
(d.)	Deferred tax liability - balance at year-end.
(e.)	Deferred tax liability change dr or (cr) for the year.
(f.)	Income tax expense for the year.