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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, 2025. 1. Buffalo Co.

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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, 2025. 1. Buffalo Co. has developed the following schedule of future taxable and deductible amounts. 2. Carla Co, has the following schedule of future taxable and deductible amounts. Both Buffalo Co : and Carla Co. have taxable income of $3,600 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 20252028 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 2025. and indicate how it should be classified on the balance sheet for situation onc. Deferred income taxes to be reported at the end of 2025 in Buffalo Co. 5 2. 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 balance sheet for situation two. Deferred income taxes to be reported at the end of 2025 in Carla Ca

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