1. (Explain Future Taxable and Deductible Amounts, How Carry back and Carry forward Affects Deferred Taxes) Maria Rodriquez and Lynette Kingston are discussing accounting for income taxes. They are currently studying a schedule of taxable and deductible amounts that will arise in the future as a result of existing temporary differences. The schedule is as follows.
(a) Explain the concept of future taxable amounts and future deductible amounts as illustrated in the schedule.
(b) How do the carry back and carry forward provisions affect the reporting of deferred tax assets and deferred tax liabilities?
