A company that has both short-term deferred tax assets of $22,000, long-term deferred tax liabilities of $36,000, short-term deferred tax liabilities of $51,000 and short-term deferred tax assets of $60,000 should report

Question

Quizplus · Accepted Answer

The company should report a non-current liability for $5,000, as this is the difference between the long-term deferred tax liabilities and the long-term deferred tax assets. The short-term deferred tax assets and liabilities cancel each other out and do not need to be separately reported.

A Company That Has Both Short-Term Deferred Tax Assets of $22,000