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

The enacted tax rate is 40% for both situations. Determine the income tax expense for the year.
Situation 1 Situation 2
a. $ 16,000 $ 32,000
b. $ 15,000 $ 33,000
c. $ 11,000 $ 30,000
d. $ 20,000 $ 28,000

Situation Taxable income Amounts at yearenc: Future deductible amounts Future taxable amounts Balances at beginning of year Deferred tax asset Deferred tax liability 2 S40,000 $90,000 10,000 5,000 5,000 S 1,000 $ 4,000 1,000