As of December 31, 2024, Lange Company has the following deferred tax assets and liabilities: Deferred tax assets Pension plans Inventory Total deferred tax assets Deferred tax liabilities Property, plant and equipment Gain on equity investments (unrealized) Total deferred tax liabilities $ 300,000 200,000 $ 500,000 $ 100,000 350,000 $ 450,000 Required: 1. Assume that all of Lange's deferred tax assets and liabilities are in the same tax jurisdiction. How would deferred taxes be shown on Lange's balance sheet? 2. Assume that the deferred tax effects of Lange's pension plans and unrealized gains on Investments occurred in a different tax Jurisdiction from Lange's other deferred tax effects. How would deferred taxes be shown on Lange's balance sheet?

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue autho…