Presented below are two independent situations related to futuretaxable and deductible amounts resulting from temporary differencesexisting at December 31, 2020. 1. Sunland Co. has developed thefollowing schedule of future taxable and deductible amounts. 20212022 2023 2024 2025 Taxable amounts $200 $200 $200 $200 $200Deductible amount — — — (1,400 ) 2. Coronado Co. has the followingschedule of future taxable and deductible amounts. 2021 2022 20232024 Taxable amounts $200 $200 $200 $200 Deductible amount — —(2,500 ) — Both Sunland Co. and Coronado Co. have taxable income of$3,800 in 2020 and expect to have taxable income in all futureyears. The tax rates enacted as of the beginning of 2020 are 30%for 2020–2023 and 35% for years thereafter. All of the underlyingtemporary differences relate to noncurrent assets andliabilities.

1. Compute the net amount of deferred incometaxes to be reported at the end of 2020, and indicate how it shouldbe classified on the balance sheet for situation one.

Deferred income taxes to be reported at the end of 2020 inSunland Co.

$

SUNLAND CO. Balance Sheet (Partial)                                                       December 31, 2020For the Year Ended December 31, 2020For theQuarter Ended December 31, 2020
Current AssetsCurrent LiabilitiesIntangible AssetsLong-termInvestmentsNoncurrent LiabilitiesOther AssetsProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal Stockholders' Equity
					$

2. Compute the net amount of deferred income taxesto be reported at the end of 2020, and indicate how it should beclassified on the balance sheet for situation two.

Deferred income taxes to be reported at the end of 2020 inCoronado co.

$

CORONADO CO. Balance Sheet                                                       December 31, 2020For the Year Ended December 31, 2020For theQuarter Ended December 31, 2020
Current AssetsCurrent LiabilitiesIntangible AssetsLong-termInvestmentsNoncurrent LiabilitiesOther AssetsProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal Stockholders' Equity
					$