Homestake Mining Company 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 valuation allowance of $207,175                                       95,275
Net deferred tax liability                                                                                           $207,775

Note 6: The classification of deferred tax assets and liabilities is based on the related asset or     liability creating the deferred tax. Deferred taxes not related to a specific asset or liability are classified based on the estimated period of reversal.

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 gross deferred tax liabilities (future taxable amounts) and gross deferred tax assets (future deductible amounts).
  (c) Homestake reported tax loss carryforwards of $71,151 and tax credit carryforwards of $12,007. How do the carryback and carryforward provisions affect the reporting of deferred tax assets and deferred tax liabilities?