Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2020.

Problem 19-06 Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2020. 1. Pearl Co. has developed the following schedule of future taxable and deductible amounts. 2021 $300 2022 $300 2023 $300 - Taxable amounts Deductible amount 2024 $300 (2,100) 2025 $300 2. Martinez Co. has the following schedule of future taxable and deductible amounts. 2022 2021 $300 2024 $300 Taxable amounts Deductible amount 2023 $300 (2,300) $300 Both Pearl Co. and Martinez Co. have taxable income of $4,200 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 30% for 2020-2023 and 35% for years thereafter. All of the underlying temporary differences relate to noncurrent assets and liabilities. 1. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation one. Deferred income taxes to be reported at the end of 2020 in Pearl Co. $ PEARL CO. Balance Sheet (Partial) 2. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation two. Deferred income taxes to be reported at the end of 2020 in Martinez co. MARTINEZ CO. Balance Sheet Click if you would like to Show Work for this question: Open Show Work