Reference no: EM13588803

Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2012.
1. Mooney Co. has developed the following schedule of future taxable and deductible amounts.

		2013		2014		2015		2016			2017
Taxable amounts		$200		$200		$200		$200			$200
Deductible amount		-		-		-		(2,000	)

2. Roesch Co. has the following schedule of future taxable and deductible amounts.

		2013		2014		2015			2016
Taxable amounts		$200		$200		$200			$200
Deductible amount		-		-		(2,300	)		-

Both Mooney Co. and Roesch Co. have taxable income of $5,400 in 2012 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2012 are 32% for 2012-2015 and 37% for years thereafter. All of the underlying temporary differences relate to noncurrent assets and liabilities.

1. Compute the net amount of deferred income taxes to be reported at the end of 2012, and indicate how it should be classified on the balance sheet for situation one.

2. Compute the net amount of deferred income taxes to be reported at the end of 2012, and indicate how it should be classified on the balance sheet for situtation two.