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