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Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2012. 1. Mooney Co.
Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2012. 1. Mooney Co. has developed the following schedule of future taxable and deductible amounts. 2013 2014 2015 2016 Taxable Amount $200 $200 $200 $200 Deductible Amounts ($2,100) 2. Roesch Co. has the following schedule of future taxable and deductible amounts. 2013 2014 2015 2016 Taxable Amount $200 $200 $200 $200 Deductible Amounts ($2,600) Both Mooney Co. and Roesch Co. have taxable income of $5,900 in 2012 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2012 are 33% for 2012-2015 and 37% 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 2012, and indicates how it should be classified on the balance sheet for situation one. Deferred income taxes to be reported at the end of 2012 in Mooney Co. $______________ 2. Compute the net amount of deferred income taxes to be reported at the end of 2012, and indicates how it should be classified on the balance sheet for situation two. Deferred income taxes to be reported at the end of 2012 in Mooney Co. $______________
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