The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): The applicable tax rate is 40%. There are no other temporary or permanent differences.
-Franklin's balance sheet at the end of its first year would report:

Question

The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):  The applicable tax rate is 40%. There are no other temporary or permanent differences. 
-Franklin's balance sheet at the end of its first year would report:

Quizplus · Accepted Answer

The deferred tax liability of $16 million ($40 × 40%) would be reported under noncurrent liabilities. All deferred tax items are classified as noncurrent.

The Following Information Relates to Franklin Freightways for Its First