Times Roman Publishing Company reports the following amounts in its first three years of operation ($ in 000s) 2016 2017 2018 Pretax accounting income $ 360 $ 340 $ 330 Taxable income 400 350 370 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 ) 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 ) 4 How should the deferred tax amount be classified and reported in the balance sheet Noncurrent Current

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Times Roman Publishing Company reports the following amounts in its first three years of operation  ($ in 000s) 2016 2017 2018 Pretax accounting income $ 360 $ 340 $ 330 Taxable income 400 350 370 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 ) 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 ) 4  How should the deferred tax amount be classified and reported in the balance sheet  Noncurrent Current

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Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in 000s) 2016 2017 2018 Pretax accounting income $ 360

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($ in 000s)	2016		2017		2018
Pretax accounting income	$	360	$	340	$	330
Taxable income		400		350		370

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

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.)