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

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.

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)