Rodriquez and Lynette Kingston are discussing accounting for income taxes. They are currently studying a schedule of taxable and deductible amounts that will arise in the future as a result of existing temporary differences. The schedule is as follows.

Instructions
(a) Explain the concept of future taxable amounts and future deductible amounts as illustrated in the schedule.
(b) How do the carryback and carryforward provisions affect the reporting of deferred tax assets and deferred

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Future Years 2017 2018 2019 2020 2021 Taxable income $850,000 5375,000 Taxable amounts Deductible amounts Enacted tax rate 375,000 5375,000 375,000 50'% 45% 40% 35% 30%