Indicate manner in which deferred taxes should be presented

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Question: (Three Differences, Classify Deferred Taxes) At December 31, 2013, Belmont Company had a net deferred tax liability of $375,000. An explanation of the items that compose this balance is as follows.

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In analyzing the temporary differences, you find that $30,000 of the depreciation temporary difference will reverse in 2014, and $120,000 of the temporary difference due to the installment sale will reverse in 2014. The tax rate for all years is 40%.

Instructions: Indicate the manner in which deferred taxes should be presented on Belmont Company's December 31, 2013, balance sheet.

Reference no: EM131592551

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