The records of Calib Corporation provided the following summarized data for 2023 and 2024.

	Year-End December 31
		2023	2024
Statement of Earnings
Revenue		$210 000	$218 000
Expenses (excluding income tax)		130, 000	133 000
Earning before income taxes		$80 000	$85 000

1. Calib is subject to income tax rate of 35 percent. Assume that 80 percent of the income taxes payable are paid in the current year and 20 percent on February 28 of the next year.
2. The temporary differences resulted from the following:
3. The 2024 expenses include the amount of $8000 that was deducted only in the 2023 tax return.
4. The 2024 revenues include an amount of $6000 that is taxable only in 2025.
5. The taxable income shown in the tax returns is $ 72 000 for 2023 and $ 87 000 for 2024.

1. For each year, compute(a) the income taxes payable and (b) the deferred income taxes. Identify whether the deferred income tax amounts are assets or liabilities. Explain.
2. Prepare the journal entry for each year to record income taxes payable, deferred income taxes, and income tax expense.
3. Show the tax-related amounts that should be reported each year on the statement of earnings and the statement of financial position.
4. As a financial analyst, would you evaluate differently a deferred income tax liability compared with income taxes currently payable?