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 $100,000 $130,000 Amounts at year-end: Future deductible amounts 0 10,000 Future taxable amounts 10,000 15,000 Balances at beginning of year: Deferred tax asset Deferred tax liability 0 $2,000 2,000 The enacted tax rate is 40% for both situations. Required: For each situation determine the: (a.) (b.) (c.) (d.) (e.) Income tax payable currently. Deferred tax asset-balance at year-end. Deferred tax asset change dr or (cr) for the year. Deferred tax liability - balance at year-end. Deferred tax liability change dr or (cr) for the year. Income tax expense for the year. A- B I 7