A deferred tax liability arising from the use of an accelerated method of depreciation for tax purposes and the straight-line method for financial reporting purposes would be classified on the balance sheet as

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A deferred tax liability is a noncurrent liability that represents the taxes that will eventually be payable in the future when temporary differences reverse. Temporary differences arise because of differences in timing between when transactions affect taxable income and when they affect reported financial income. In this case, the accelerated method of depreciation for tax purposes causes taxable income to be lower in the earlier years of the asset's life, but higher in later years. As a result, taxes are deferred until later years, creating a noncurrent deferred tax liability.

A Deferred Tax Liability Arising from the Use of an Accelerated