Beacon Corporation recorded the following deferred tax assets and liab


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Beacon Corporation recorded the following deferred tax assets and liabilities: Current deferred tax assets $ 650,000 Current deferred tax liabilities (400,000 ) Noncurrent deferred t

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Beacon Corporation recorded the following deferred tax assets and liabilities:


Current deferred tax assets

$

650,000

Current deferred tax liabilities

(400,000

)

Noncurrent deferred tax assets

1,000,000

Noncurrent deferred tax liabilities

(2,500,000

)

Net deferred tax liabilities

$

(1,250,000

)

All of the deferred tax accounts relate to temporary differences that arose as a result of the company's U.S. operations. Which of the following statements describes how Beacon should disclose these accounts on its balance sheet?

a. Beacon reports a net deferred tax liability of $1,250,000 on its balance sheet.

b. Beacon nets the deferred tax assets and the deferred tax liabilities and reports a net deferred tax asset of $1,650,000 and a net deferred tax liability of $2,900,000 on its balance sheet.

c. Beacon can elect to net the current deferred tax accounts and the noncurrent tax accounts and report a net current deferred tax asset of $250,000 and a net deferred tax liability of $1,500,000 on its balance sheet.

d. Beacon is required to net the current deferred tax accounts and the noncurrent deferred tax accounts and report a net current deferred tax asset of $250,000 and a net deferred tax liability of $1,500,000 on its balance sheet.

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