Crystal Critters, Inc., a U.S. GAAP reporter, has the deferred tax assets and liabilities presented below: Item Classification on the Balance Sheet of Related Account Deferred Tax Associated with Item Excess of warranty expense over warranty deductions Current $74,000 Asset Accelerated depreciation for tax purposes Noncurrent $84,000 Liability Installment sales receivable Current $44,000 Liability Contingent liability Current $34,000 AssetAssuming it meets the conditions to net assets and liabilities, how will the company report deferred taxes on the balance sheet? Group of answer choices current asset: deferred tax asset $108,000; noncurrent liability: deferred tax liability $128,000 noncurrent liability: deferred tax liability $20,000 current liability: deferred tax liability $64,000; noncurrent liability: deferred tax liability $84,000 current liability: deferred tax liability $44,000; noncurrent asset: deferred tax asset $84,000
Crystal Critters, Inc., a U.S. GAAP reporter, has the deferred tax assets and liabilities presented below: Item Classification on the Balance Sheet of Related Account Deferred Tax Associated with Item Excess of warranty expense over warranty deductions Current $74,000 Asset Accelerated depreciation for tax purposes Noncurrent $84,000 Liability Installment sales receivable Current $44,000 Liability Contingent liability Current $34,000 AssetAssuming it meets the conditions to net assets and liabilities, how will the company report deferred taxes on the balance sheet? Group of answer choices current asset: deferred tax asset $108,000; noncurrent liability: deferred tax liability $128,000 noncurrent liability: deferred tax liability $20,000 current liability: deferred tax liability $64,000; noncurrent liability: deferred tax liability $84,000 current liability: deferred tax liability $44,000; noncurrent asset: deferred tax asset $84,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 1P: Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are...
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Crystal Critters, Inc., a U.S. GAAP reporter, has the deferred tax assets and liabilities presented below:
Assuming it meets the conditions to net assets and liabilities, how will the company report deferred taxes on the balance sheet?
| Item | Classification on the Balance Sheet of Related Account | Deferred Tax Associated with Item |
| Excess of warranty expense over warranty deductions | Current | $74,000 Asset |
| Accelerated depreciation for tax purposes | Noncurrent | $84,000 Liability |
| Installment sales receivable | Current | $44,000 Liability |
| Current | $34,000 Asset |
Group of answer choices
current asset: deferred tax asset $108,000; noncurrent liability: deferred tax liability $128,000
noncurrent liability: deferred tax liability $20,000
current liability: deferred tax liability $64,000; noncurrent liability: deferred tax liability $84,000
current liability: deferred tax liability $44,000; noncurrent asset: deferred tax asset $84,000
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