Presented below are two independent situations

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Two Differences, Two Rates, Future Income Expected) Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2010.

1. Mooney Co. has developed the following schedule of future taxable and deductible amounts.

2. Roesch Co. has the following schedule of future taxable and deductible amounts. Both Mooney Co. and Roesch Co. have taxable income of $4,000 in 2010 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2010 are 30% for 2010-2013 and 35% for years thereafter. All of the underlying temporary differences relate to noncurrent assets and liabilities. For each of these two situations, compute the net amount of deferred income taxes to be reported at the end of 2010, and indicate how it should be classified on the balance sheet.

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Reference no: EM131109109

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