Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2018.
1. Mooney Co. has developed the following schedule of future taxable and deductible amounts.

2. Roesch Co. has the following schedule of future taxable and deductible amounts.

Both Mooney Co. and Roesch Co. have taxable income of $4,000 in 2018 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2018 are 30% for 2018-2021 and 35% for years thereafter.
Instructions
For each of these two situations, compute the net amount of deferred income taxes to be reported at the end of 2018, and indicate how it should be classified on the statement of financial position.

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2019 2020 2021 2022 2023 Taxable amounts $300 $300 $300 $ 300 $300 Deductible amount (1,600) 2019 2020 2021 2022 Taxable amounts $300 $300 $ 300 $300 Deductible amount (2,300) |