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

($ in 000s)	2016	2017	2018
Pretax accounting income	$	380		$	360		$	350
Taxable income		430			370			390

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.

1.

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

Temporary difference on 12/31 :

1) 2016

2) 2017

3) 2018

2. 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.)

12/31:

1) 2016

2) 2017

3) 2018