Franklin's Balance Sheet at the End of Its First Year

Franklin's balance sheet at the end of its first year would report:

A) A deferred tax liability of $16 among noncurrent liabilities.
B) A deferred tax liability of $16 among current liabilities.
C) A deferred tax asset of $16 among noncurrent assets.
D) A deferred tax asset of $16 among current assets.The deferred tax liability of $16 ($40 40%) would be reported under noncurrent liabilities because the future taxable amount is related to depreciable assets, which are classified as noncurrent.