Question

Marigold Corporation has temporary differences at December 31, 2017, that result in the following deferred taxes. Deferred tax liability related to depreciation difference $38,500 Deferred tax asset related to warranty liability 63,800 Deferred tax liability related to revenue recognition 104,000 Deferred tax asset related to litigation accruals 24,900 Indicate how these balances would be presented in Marigold’s December 31, 2017, balance sheet.

Answer 1

Liabilties
Depreciation	38,500
Revenue Recognition	104,000
Total deferred tax liabilities	142,500
Assets
Warranty Liability	63,800
Litigation accruals	24,900
Total deferred tax Assets	88,700
Total Net Deferred tax liability	53,800

Per US GAAP and IFRS, deferred tax assets and liabilities are reported under Non-current assets or liabilities. There is no current portion. Also, one amount is reported, either a net deferred tax asset ot a net deferred tax liability