ttps://newconnect.mheducation.com/flow/connect.html Saved At December 31, 2018,
ID: 2550957 • Letter: T
Question
ttps://newconnect.mheducation.com/flow/connect.html Saved At December 31, 2018, Control Enterprises had the following deferred income tax items Deferred income tax liability of $24 million related to a current asset Deferred income tax asset of $18 million related to a current liability Deferred income tax liability of $40 million related to a noncurrent asset Deferred income tax asset of $12 million related to a noncurrent liability Control Enterprises should report in its December 31, 2018, balance sheet a: Multiple Choice Noncurrent asset of $30 million and a non-current liability of $64 million Current asset of $6 million. Noncurrent asset of $28 million and a non-current liability of $15 million. Noncurrent liability of $34 million.Explanation / Answer
Answer Current asset $6 million (option b)
Explanation : As per US GAAP , deferred tax needs to be presented in balance sheet as net current asset or liability and net non current asset or liability.
Accordingly , in the given question net current asset = $24 - $18 = $6 million & net non current asset = $40 - $12 = 38 million
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