Amber Corporation reported the following summarized pretax data at the end of each year:

Taxable income from the income tax return was as follows: \(2010, \$ 32,000 ; 2011, \$ 56,000\); and \(2012, \$ 85,000\)

Required:
1. For each year, compute

(a) the income taxes payable and

(b) the deferred income tax. Is the deferred income tax a liability or an asset? Explain.
2. Show the tax-related amounts that should be reported each year on the income statement and the statement of financial position.

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Income Statement for the Year 2010 2011 2012 Revenues $170,000 122,000 $182,000 125,000 $195,000 130,000 $ 48,000 $ 56,000 $ 65,000 Expenses (including depreciation)" Pretax profit Straight-line depreciation expense on a machine purchased January 1, 2010, for $75,000. The machine has a three-year estimated life and no residual value. The company used capital cost allowance on the income tax return as follows: 2010. $37,500; 2011, $25,000 and 2012. $12,500. The average income tax ralo s 28 percent for each of the three years..