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).

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 taxliabilities?

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$ 26,349 (39,436) Total current taxes Total deferred taxes 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 $207,775 Net deferred tax liability Note 6: The classification of deferred tax assets and liabilities is based on the related asset or liabil- ity creating the deferred tax. Deferred taxes not related to a specific asset or liability are classified based on the estimated period of reversal. $71,151 $12,007 Tax loss caryforwards (U.S., Canada, Australia, and Chile) Tax credit carryforwards