Riley Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:

		Accounting
		Income
Year		(Loss)			Tax Rate
2015		$120,000			25	%
2016		90,000			25	%
2017		(280,000)			30	%
2018		220,000			30	%

The tax rates listed were all enacted by the beginning of 2015. Riley reports under the ASPE future/deferred income taxes method.

(e) Discuss what information should be disclosed in the notes to the financial statements. Assume that it is more likely than not that one quarter of the carryforward benefits will not be realized. This company does not use a valuation allowance.