Times-Roman Publishing Company reports the following amounts in its first three years of operation:

($ in 000s)	2016			2017			2018
Pretax accounting income	$	290		$	270		$	260
Taxable income		310			280			300

The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when earned. The income tax rate is 40% each year. Times-Roman anticipates profitable operations in the future.

Required:

1.

What is the balance sheet account for which a temporary difference is created by this situation?

	Unearned subscription
	Earned subscription

2.	For each year, indicate the cumulative amount of the temporary difference at year-end. (Enter your answers in thousands.)

December 31 2016 2017 2018

Temporary difference ? ? ?

3.	Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? (Enter your answers in thousands.)
	December 31 2016 2017 2018 ? ? ? ?

4.

How should the deferred tax amount be classified and reported in the balance sheet?

	Current
	Noncurrent