Darrell Corporation reports under IFRS and at December 31, 2012, the company had a net future tax liability of $375,000. An explanation of the items that make up this balance follows:

Instructions
(a) Indicate how future taxes should be presented on Darrell Corporation€™s December 31, 2012 balance sheet.
(b) How would your response to (a) change if Darrell Corporation followed the PE GAAP future income taxes method?

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Resulting Balances in Future Tax Account Temporary Differences 1. Excess of accumulated tax depreciation over book depreciation 2. Accrual, for book purposes, of estimated loss contingency from $230,000 pending lawsuit that is expected to be settled in 2012. The loss will be deducted on the tax return when it is paid. (80,000) 3. Accrual method (account receivable) used for book purposes and instalment method used for tax purposes for an isolated instalment sale of an investment, due in 2013. 225,000 $375,000