Amber Corporation reported the following summarized pretax data at the end of each year:

Taxable income from the income tax return was as follows: 2013, $ 32,000; 2014, $ 56,000; and 2015, $ 85,000.
Required:
1. For each year, compute (a) the income taxes payable and (b) the deferred income tax. Is the deferred income tax a liability or an asset? Explain.
2. Show the tax- related amounts that should be reported each year on the statement of earnings and the statement of financial position.

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Statement of Earnings for the Year Revenues 2013 $170,000 122,000 2014 $182,000 2015 $195,000 00600 130,000 48000 500 $65.000 Expenses (including depreciation) Pretax eamings Straight-line depreciation expense on a machine purchased January 1, 2013, for $75,000. The machine has a three-year estimated life and no residual value. The company used capital cost allowance on the income tax return as follows: 2013, $37500; 2014, $25,000; and 2015, $12,500. The average income tax rate is 28 percent for each of the three years.