Question

Youngman Corporation has temporary differences on December 31, 2021, that resulted in the following deferred taxes.

    Deferred tax asset        $24,000

    Deferred tax liability     $69,000

Indicate how these balances would be presented in Youngman’s December 31, 2021, statement of financial position.

Answer 1

Computation of the deferred tax liability will be presented in Balance sheet

Given information:

Deferred tax asset       $24,000

Deferred tax liability    $69,000

 

These two will affects the balance sheet. Under Balance sheet liabilities side under noncurrent liabilities:

Non-current liabilities

Deferred tax liability               $69,000

Less: Deferred tax asset          $24,000

Deferred tax liability               $45,000

 

Hence the Deferred tax liability is $45,000 under the liabilities side.

The Deferred tax liability is $45,000 under the liabilities side.