Homestake Mining Company (USA) is a 120-year-old international gold mining company with substantial gold mining operations and exploration in the United States, Canada, and Australia. At year-end, Homestake reported the following items related to income taxes (thousands of dollars).
Total current taxes........................................................................................................ $ 26,349
Total deferred taxes...................................................................................................... (39,436)
Total income and mining taxes (the provision for taxes per its income statement)..... (13,087)
Deferred tax liabilities .................................................................................................. $303,050
Deferred tax assets, net of an unrecognized amount of $207,175................................ 95,275
Net deferred tax liability............................................................................................... $207,775
Note 6 (partial):
Tax loss carryforwards (U.S., Canada, Australia, and Chile) ..................................... $71,151
Tax credit carryforwards.............................................................................................. $12,007

Instructions
(a) What is the significance of Homestake’s disclosure of “Current taxes” of $26,349 and “Deferred taxes” of $(39,436)?
(b) Explain the concept behind Homestake’s disclosure of deferred tax liabilities (future taxable amounts) and deferred tax assets (future deductible amounts).
(c) Homestake reported tax loss carry forwards of $71,151 and tax credit carry forwards of $12,007. How do the carryback and carry forward provisions affect the reporting of deferred tax assets and deferred tax liabilities?