Question

Pronghorn Corporation has temporary differences at December 31, 2017, that result in the following deferred taxes.

Deferred tax liability related to depreciation difference		$39,600
Deferred tax asset related to warranty liability		59,100
Deferred tax liability related to revenue recognition		88,800
Deferred tax asset related to litigation accruals		28,400

Indicate how these balances would be presented in Pronghorn’s December 31, 2017, balance sheet.

Pronghorn Corporation Balance Sheet (Partial) December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsNon-current LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
					$

Answer 1

Answer-

PRONGHORN CORPORATION
BALANCE SHEET (PARTIAL)
DECEMBER 31,2017
Liabilities	Amount
Non Current liabilities
Deferred Tax Liability	$40900

Explanation- Total deferred tax liability = Deferred tax liability related to depreciation difference+ Deferred tax liability related to revenue recognition

= $39600+$88800

= $128400

Total deferred tax asset = Deferred tax asset related to warranty liability+ Deferred tax asset related to litigation accruals

= $59100+$28400

= $87500

Balance in deferred tax liability = $128400-$87500

= $40900