1. Mooney Co. has developed the following schedule of future taxable and deductible amounts. 2018 2019 2020 2021 2022 $ 300 (1,600) Taxable amounts $300 $300 $300 $300 Deductible amount 2. Roesch Co. has the following schedule of future taxable and deductible amounts. 2018 2019 2020 2021 Taxable amounts Deductible amount $ 300 (2,300) $300 $300 $300
(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, 2017.
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Both Mooney Co. and Roesch Co. have taxable income of $4,000 in 2017 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2017 are 30% for 2017–2020 and 35% for years thereafter. All of the underlying temporary differences relate to noncurrent assets and liabilities.
Instructions
For each of these two situations, compute the net amount of
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