Lincoln Company has the following four deferred tax items at December 31, 2012.The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same tax authority.On Lincoln's December 31, 2012 statement of financial position, it will report

Question

Quizplus · Accepted Answer

The question states that there are four deferred tax items, and since the deferred tax assets and liabilities relate to the same tax authority, they should be netted together. Therefore, we need to calculate the total deferred tax liability and asset. 
Deferred tax assets: $125,000 + $93,000 = $218,000
Deferred tax liabilities: $75,000 + $233,000 = $308,000
Net deferred tax liability: $308,000 - $218,000 = $90,000
Since it is a non-current liability, the correct answer is C.

Lincoln Company Has the Following Four Deferred Tax Items at December