$ 26,349 (39,436) Total current taxes Total deferred taxes Total income and mining taxes (the provision for taxes per its income statement) $(13,087) Deferred tax liabilities $303,050 95,275 Deferred tax assets, net of valuation allowance of $207,175 Net deferred tax liability $207,775 Note 6: The classification of deferred tax assets and liabilities is based on the related asset or liability creating the deferred tax. Deferred taxes not related to a specific asset or liability are classified based on the estimated period of reversal. Tax loss carryforwards (U.S., Canada, Australia, and Chile) Tax credit carryforwards $71,151 $12,007
Homestake Mining Company
Homestake Mining Company is a 120-year-old international gold mining company with substantial gold mining operations and exploration in the United States, Canada, and Australia. At year-end, Homestake reported the following items related to income taxes (thousands of dollars).
Check the below image for income taxes related items.
Instructions
(a) What is the significance of Homestake’s disclosure of “Current taxes” of $26,349 and “
(b) Explain the concept behind Homestake’s disclosure of gross
(c) Homestake reported tax loss carryforwards of $71,151 and tax credit carryforwards of $12,007. How do the carryback and carryforward provisions affect the reporting of deferred tax assets and deferred tax liabilities?
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