P18.6 (LO 1, 4) (Two Differences, Two Rates, Future Income Expected) Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2025.

1. Mooney Co. has developed the following schedule of future taxable and deductible amounts.

2026 2027 2028 2029 2030 Taxable amounts $300 $300 $300 $ 300 $300 Deductible amount — — — (1,600) —

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

2026 2027 2028 2029 Taxable amounts $300 $300 $ 300 $300 Deductible amount — — (2,300) —

Both Mooney Co. and Roesch Co. have taxable income of $4,000 in 2025 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2025 are 30% for 2025–2028 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 2025, and indicate how it should be classified on the statement of financial position.